Author: Sarah Williams
Reviewed By: Kristi Bickmann

Yes, in some situations, some types of insurance cover memory care. It’s crucial that people check insurance policies when considering how to pay for memory care, as sometimes, coverage may be included and ease their out-of-pocket expenses. Individuals must generally meet criteria concerning how long they’ve held policies to benefit from payouts. Although long-term care insurance is the most common type of insurance that pays toward memory care fees, other plan types may also include some coverage.

Types of insurance

When setting up a long-term care insurance plan, individuals typically choose the level of care they want to cover and pay the associated premiums, with limited support coverage attracting higher premiums than more intensive care. Most plans stipulate minimum waiting periods between needing care and payments beginning.

Individuals usually qualify for payments as soon as they have functional or cognitive care needs. However, it’s important to clarify whether memory care facilities accept payment from insurance providers. Additionally, individuals can’t generally start a new policy if they already have a dementia diagnosis.      

Some life insurance policies include coverage for elements of care. Those that include life assurance benefits often pay directly for care. In contrast, others provide living or accelerated benefits that pay out much of the policy’s value for people with a limited life expectancy — usually 6 to 12 months — because of a life-limiting condition. Furthermore, some providers allow policyholders to use a viatical loan, essentially borrowing from the policy with outstanding amounts to be paid back after their death. Some private Medicare Advantage plans also include some coverage for memory care.  

Other ways to pay for memory care

Low-income individuals may qualify for Medicaid, which sometimes covers specific services provided by memory care communities, depending on the care setting. In some instances, individuals may qualify for funding through Medicaid waiver programs, although eligibility requirements vary from state to state. VA Benefits might cover some care costs for veterans or their dependents. However, some individuals might need to pay partial or full care costs themselves from income or assets, or family members may chip in to help older relatives access specialized memory care services.