When checking out the financial information of a high-end senior living community, you should have an open mind. It’s vital to assess your future and current requirements and think of the long-run value that will enable you to determine the possible option. And you might as well get surprised as several options are more affordable than you thought they might be.
The concept of high-end senior living is an extension of a good life. If you want to know how to afford one, you can consider the following factors:
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Make the most of your life insurance policy
If you or your parent has paid premiums on a universal or an entire life insurance policy for ten years or more and can stay with reduced heirs, you have the option to tap the built-up cash of the policy. If you withdraw on a cost basis or borrow from your policy, you won’t owe anything to tax. Also, just in case you choose to cash the entire policy, you will pay the usual income tax on all things at a cost basis. Most people suggest withdrawing on a cost basis and then borrow the rest. You can find top-rated assisted living communities for more information.
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Check if you qualify for the veteran’s benefits
The veterans’ survivors and veterans who qualify for the Veterans Affairs pension and have also documented mental and physical limitations might qualify for a hike in the pension benefits each month, known as a special or enhanced monthly pension. To qualify for the pension benefits, veterans should serve at a phase of the conflict, cater to specific disability or age requirements and cater to particular net worth and income limits. Also, an existing spouse must cater to the specific criteria. A survivor or veteran might qualify for the special or enhanced monthly pension, provided they are eligible for the pension advantages. They require help with every activity owing to some disability.
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Opt for a home loan
The homeowners who need or want to keep a house in their family can opt-in for the home equity lines of credit or home equity loans. It is essential to opt-in for the lowest set-up price, which comprises fees for the loan origination, processing, appraisals, underwriting, and document preparation. Also, a few home equity lines of credit need just the interest payments when you decide to draw out money, which can be about ten years or even more. This arrangement can work well if the home gets sold within a decade.
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Create a reverse mortgage
Homeowners who are 62 years or more and have used up all their options and are sure that they will be able to afford to stay at home may wish to use this gambit if only a single spouse opts for assisted living. In such a situation, the reverse mortgage enables you to get the cash for home equity. You can draw the cash or obtain a huge sum per requirement based on the type of loan. You can borrow more, based on your age. The maximum value is approximately 74% of your home value.
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Select an assisted living option that has a flexible cost structure
The costliest pricing model includes all the services, such as on-call help on the floor 24×7, three meals a day, proper transportation, and many more. A less costly “tiered pricing” or “levels of care” assisted living model positions most seniors at the price bracket that entitles them to a certain amount of time for care. And if it is possible for them to sustain without extra care, this option will suffice.
Usually, the fee-for-service, affordable model enables the residents to pay just for the required services. The majority of facilities provide a single pricing structure. However, if you are assigned a choice you need to make that wisely. However, assisted living is one industry where the cost structure can’t change much once it’s decided. You can check out the assisted living with memory care in Grand Rapids to know more.
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Choose the low-cost rooms
Similar to any other real estate transaction, the room rent will correspond to the size and location. And if your parent can and wants to stay away from the dining space, they can save almost $50 every month on the rent. Also, if they can manage a studio, then they can save many hundred dollars every month. The residents who can share a one-bedroom apartment, thereby converting the living room into a bedroom, can save almost 40% to 50% of the rent based on the facility. And just in case you have to share an apartment having two bedrooms, you might require furniture for your room.
These are a few ways in which you can afford a high-end assisted living community for your parent and make the best choice.
