Upon retiring, many people downsize to all-inclusive independent living communities. These communities provide all various amenities without asking seniors to negotiate the obstacles of traditional home ownership.
Although senior living apartments or condominiums often may great arrangements, all-inclusive properties tend to cost more money than standard apartments. Interested parties may experience a bit of sticker shock initially before looking for ways to finance their new living arrangements.
• Long-term care insurance: Individuals who plan ahead can invest in long-term care insurance. This insurance may be able to cover the costs of some housing facilities, or help finance outside private caregiver assistance.
• Life insurance policies: Some insurance policies can be cashed in for a percentage of their face value. This money can then be used to offset the costs of senior housing.
• Home sale profit: Many seniors sell their homes and pay for new living situations with the return on those sales. Bridge loans can help as seniors wait for their homes to be sold.
• Line of credit: A loan system called an “Elderlife Line of Credit,” enables multiple family members or friends to share the cost of paying for eldercare.
• New location: Finding a community in locations with more manageable cost of living expenses may be the best way to maintain your standard of living without breaking the bank.