How to pay for senior care.
Senior care is expensive, and the way it is paid for is confusing by design. The good news: most families combine two or three sources, and some of them are commonly missed. Here are the six that matter.
1. Private pay
Personal savings, retirement income, Social Security, and family contributions. This is how most care is paid for, at least at first. Knowing the real monthly cost in your area makes planning far easier, which is what our cost of care pages are for.
2. Long-term care insurance
If your parent bought a policy years ago, it can be one of the most valuable tools available, covering assisted living, memory care, in-home care, and nursing homes depending on the terms. Dig out the policy and read what it covers before paying out of pocket.
3. VA Aid and Attendance
One of the most overlooked benefits. Wartime veterans and their surviving spouses may qualify for a monthly payment on top of their VA pension to help pay for care. Many families who are eligible never apply simply because they do not know it exists.
4. Medicaid
For those who meet the income and asset limits, Medicaid is the main public program that covers long-term care. It broadly covers nursing home care, and through state-specific waiver programs it can help with assisted living and in-home services.
5. Medicare (with limits)
Medicare is widely misunderstood here. It covers short-term skilled nursing and rehabilitation after a qualifying hospital stay. It does not pay for long-term assisted living, memory care, or custodial in-home help. Do not count on it for ongoing care.
6. Home equity and life insurance
A home sale, reverse mortgage, or bridge loan can fund care, especially in-home care, while longer-term resources are arranged. Some life insurance policies can also be converted into a benefit that pays for care.
Keep reading: Cost of senior care by city · The types of senior care · Find care communities near you