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How Does Assisted Living Work?
Date Updated: July 26, 2024
Written by:
Rachel Lustbader is a writer and editor with a background in healthcare and technology. Her work has been published on websites including HealthCare.com, BiteSizeBio.com, BetterHelp.com, Caring.com, and PayingforSeniorCare.com. She studied health science and public health at Boston University.
Both of Rachel’s grandmothers had very positive experiences in senior living communities, and Rachel saw firsthand the impact that kind, committed caregivers and community managers can have on seniors’ and their family members’ lives. With her work at Caring, Rachel hopes to help other families find communities, caregivers, and at-home products that benefit elderly loved ones and make life less stressful for family caregivers
How Do Families Pay for Assisted Living?
Most families pay for assisted living out of pocket. They often use retirement funds, investment income or personal savings. Some people sell their existing homes or take out reverse mortgages. Long-term care insurance also provides coverage if purchased in advance. If a family member has life insurance, cashing out the policy offers a source of income to help pay for assisted living. Also, financial planning services offered by many facilities can assist families in managing these costs effectively.
Do Government Programs Pay for Assisted Living?
If your family member served in the military and needs help with activities of daily living such as bathing, dressing, and grooming, they may be eligible for a pension through the Veterans Administration’s Aid and Attendance Program.
How Much Does Assisted Living Cost Per Month?
Assisted living provides a median cost of $5,350 per month, according to 2024 data from the Genworth Cost of Care Survey. Although this average reflects the entire U.S., assisted living costs vary significantly by state. The average assisted living cost increased by nearly 19% from 2021 to 2024, highlighting the need for careful financial planning considering regional cost variations.