How much money will I need for assisted living? What happens if I run out – will I have to move? These are common questions from those who are starting the search process. If your monthly retirement income does not cover the cost of assisted living – which can range anywhere between $4,000 and $7,000 per month – there are two other sources to consider. In this article, we will examine the first: Long Term Care (LTC) insurance.

LTC insurance policies can be an affordable way to make your retirement more comfortable should you have personal, supportive, or medical needs that exceed your income or require you to reside somewhere other than your home. When looking for a LTC insurance policy, it is best to go with a company that has been around for many years. New LTC insurance companies pop up overnight, and if the company folds before you need the policy, your premiums will likely go up in smoke. The second thing to pay attention to is whether the policy pays you directly, or pays the facility. Most policies pay the facility but are there some that will pay the policyholder directly. Direct payment to you gives you more flexibility, but those policies are likely pricier.

The last thing to consider is whether the policy covers assisted living, nursing homes, or both. A policy that only covers only nursing homes cannot be used to pay for assisted living costs. And vice versa. Many policies cover both but be sure to ask. Usually, there is a maximum limit on the daily costs. The policies that cover or contribute to nursing home costs can pay upwards of $250 – $300 per day. The policies that cover or contribute to assisted living costs are typically in the $100 – $200 per day range. While a $100/day policy will likely not cover the full costs of your facility, it can supplement your retirement income to make assisted living affordable. If your retirement income is $2,000 per month, a $4,000 per month assisted living facility is now affordable for you. The policy will contribute $3,000 per month and you would contribute the additional $1,000.

It is also important to remember that you get what you pay for when it comes to assisted living facilities. You may be able to find facilities that are less expensive but watch for hidden costs. A full-service facility, such as SpringBrook Assisted Living in Onalaska, will provide virtually everything you need to live comfortably and safely. Our fees cover three meals per day, with the ability to select an alternate meal if you do not like the daily special. We pay for all utilities, and high-speed internet service is included, along with a 66-channel satellite TV package. All events, concerts, entertainment, parties, and happy hours are included. Your trash is taken out for you and your mailboxes are located indoors – no more slippery, icy driveways to deal with. Weekly housekeeping and linen laundry are also included. Our maintenance team will fix or replace your appliances at no extra cost to you. Some cheaper facilities will charge fees for many of these services, so be a savvy shopper and make sure you understand what is included at your assisted living facility.

If you do not have a LTC insurance policy, and your personal funds are dwindling, there is another option for funding assistance. Next month we will examine Medicaid Waiver programs and how those can help finance your personal, supportive, and medical needs later in life. Stay tuned for more information on this important (and often confusing) topic.