How Seniors Can Pay for Assisted Living in El Dorado Hills

May 30, 2023 / Senior Living Community
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A smiling female caregiver takes care of an older woman. Find out what assisted living costs in El Dorado Hills and tips to pay for it.

Are you concerned about the financial obligations associated with assisted living care for yourself, your spouse, or a family member? Do you find yourself wondering how much assisted living in El Dorado Hills costs?

The expenses linked to assisted living and long-term care can be a significant source of anxiety for many families. Undoubtedly, cost plays a pivotal role in deciding where to seek assisted living arrangements for yourself or your loved ones.

What is the Price of Assisted Living in El Dorado Hills?

According to the 2021 Cost of Care Survey by Genworth, the national median rates for assisted living communities or nursing homes can range from $5,000 to $9,034 per month.

In California, however, the average price for assisted living or nursing home care is closer to $6,095 to $12,167 per month, and those costs can vary depending on the type of care needed.

The best way to get an accurate quote for assisted living in El Dorado Hills — one that includes the actual services you or your loved one will need — is to get in touch with an assisted living community near you. 

We recommend touring and pricing out at least 3 assisted living communities near you in order to get a good understanding of the costs and services available.

Schedule a tour of Ponté Palmero's 23-acre senior community and talk to our dedicated staff to find out what your monthly costs would look like.

Once you've selected the right community, the next thing on your mind may be how to pay for assisted living. Here are a few of the more commonly used approaches to paying for assisted living when you or your loved ones require assistance with daily activities.

Creative Ways to Pay for Assisted Living

What are some of the ways you can pay for assisted living in El Dorado Hills? Start by talking with a trusted financial advisor who understands your financial picture and who can make personalized recommendations for paying for senior living and assisted care. These may include:

Long-Term Care Insurance

Long-Term Care (LTC) insurance is one of the more popular options for covering assisted living costs. This type of insurance is designed to provide coverage for in-home care, assisted living facilities, and nursing homes. 

Long-term care insurance benefits become active once the policyholder cannot perform at least two out of six activities of daily living (such as dressing, bathing, eating, or transferring to a wheelchair) or experiences significant cognitive impairment.

Life Insurance and Hybrid Life-LTC Policies

Permanent life insurance, such as whole or universal life insurance, is specifically designed to provide both death and living benefits. The living benefit allows policyholders to access cash while still alive. This cash, along with any potential dividends, can grow tax-deferred and become a valuable source of income during their later stages of life.

Additionally, hybrid policies combining Life Insurance with Long-Term Care insurance are available (for a higher premium than stand-alone policies). Financial expert Dave Ramsey suggests considering hybrid policies if you're unable to qualify for LTC insurance due to medical underwriting.

Veterans Pension Benefits

If you or your spouse served in the United States Armed Forces, you may be eligible for veterans benefits to help pay for assisted living costs. The Veterans Pension and Survivors Pension benefit programs offer financial assistance to some wartime Veterans and widowed spouses.

Veterans or surviving spouses eligible for a VA pension may be entitled to additional monthly benefits called the Aid and Attendance benefit if they require daily assistance. These extra payments, which are awarded in addition to a monthly VA pension, can help cover the costs of various types of care, including assisted living and memory care. 

In order to qualify for VA Aid and Attendance benefits, you must meet at least one of the following requirements:

  • You need another person to help you perform daily activities like bathing, feeding, and dressing
  • You have to stay in bed—or spend a large portion of the day in bed—because of illness
  • You are a patient in a nursing home due to the loss of mental or physical abilities related to a disability
  • Your eyesight is limited

You can learn more about this veteran benefit from the Dept. of Veterans Affairs.

Saving for Assisted Living

Saving funds directly is another effective method of financing assisted living. Vehicles such as Roth IRAs, Traditional IRAs, and 401(k)s can help you save and invest for various retirement needs, including assisted living and memory care.

Family Contributions

Sometimes the need for assisted living, memory care, or other long-term care services can sneak up unexpectedly before one has had time to save or plan. Splitting assisted living costs between children or other family members may be a strategic solution for your family. 

If you plan to split the cost between family members, it's important to have full transparency between all paying parties. Get together regularly to go over all of the financial requirements and make a plan for distributing the costs. While an even bill split may sound fair, it may not be in reality. One way to split the costs of a family member's care is for all to contribute an equal percentage of their take-home pay rather than an equal dollar amount. Family members who cannot contribute as much financially may be able to contribute in other ways, such as taking on certain caregiving tasks to lower the overall cost of assisted living.

Reverse Mortgages and Home HELOCs

Some families consider a reverse mortgage, which allows them to access cash by leveraging the equity in their home. This type of loan is typically repaid in full when the house sells after the last borrower either passes away or has been out of the home for 12 months.
A reverse mortgage can be a beneficial solution for seniors who require resources to cover their spouse's assisted living or memory care costs. 

It can also be useful for seniors who anticipate residing in a facility for a shorter duration, such as a year or less. In these cases, the borrower is permitted to live outside their home, whether in a nursing home or assisted living community, for up to 12 months before the reverse mortgage becomes due and payable.

Alternatively, seniors can explore other options that leverage an existing home, such as a home equity line of credit (HELOC) or renting out their primary residence to generate income for assisted living expenses.

When you pay for assisted living, you're paying for much more than just housing costs. Senior communities are built with special amenities and services to support aging adults, and individual assisted living services can vary based on a senior's needs. Talk to a trusted financial advisor about your options for paying for assisted living so that you can make the best choices for your family today and in the future.

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