A Guide on Independent Living and How to Finance It

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A Guide on Independent Living and How to Finance It

Finanacing

According to the American Association of Retired Persons, 50% of seniors above 50 years say they would wish to age in place. It results from a common belief that moving into a senior living community will result in losing independence. However, it is far from the truth. Independent living communities allow seniors to maintain their privacy while living in personalized apartments, condominiums, or cottages.

Independent housing communities provide the least restrictive environment for senior care. The elderly can take care of themselves with no assistance in activities of daily living. The services and amenities present may include:

    • Dining
    • Transportation
    • Recreational Activities
    • Housekeeping
    • Security

There is also a common misconception that senior living is costly and borderline prohibitive. However, according to the American Senior Housing Association, independent living communities have a median cost rage of approximately $1500 to $6000 per month. The pricing is fairer when compared to other forms of senior living, such as assisted living or nursing homes. But how do you fund your stay in the independent living community?

Here are six ways you can pay for independent living

 

1. Personal Funds

Seniors can utilize their private funds, such as retirement savings and income, to move into senior living communities. A 2016 report by Pew Research found that 20% of seniors were not yet retired and still working full-time jobs. Other sources of income include earnings from personal investments such as interests, dividends, and liquidated assets.

 

2. Social Security Benefits

Savings from your pension funds can help fund your stay within the Dallas senior living communities. The monthly checks from Social Security and other pension schemes may help offset some of the expenses.

 

3. Deferred Annuity Payments

With long-term care premium rising every year, more and more Americans are turning towards deferred annuity programs. The option allows individuals to deposit a lump sum amount in their accounts, instead of regular monthly payments. The coverage is usually 2-3 times the initial investment, allowing seniors to withdraw cash to pay for their independent living facilities.

 

4. Bridge Loan Application

This payment option is suitable for seniors awaiting the sale of their home. Some financial institutions can offer a senior-line-of-credit to fund senior living costs in the short term. You pay back the loan in a balloon payment with the lender continuing to make payments to your independent living community.

 

5. Selling or Renting Out Your Current Home

Placing the current home in the housing market makes sense for most seniors. You can then use the money you receive to pay for your independent living expenses. You may also opt to rent out space and use the earnings to finance your move to a senior housing facility.

 

6. Life Settlement

This financing option is perfect for seniors with life insurance policies. Life settlement companies agree to buy the life insurance cover from the senior in exchange for a lump sum payout.

The funds may not match the value of the policy but are more than the cash surrender value offered by the primary insurer.

Independent living communities allow you to maintain your lifestyle and privacy even in your senior years. There are diverse financing options available to fund your stay within the facilities. Feel free to contact Lakeland Hills Senior Living to discuss your plan to pay for senior care.

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