While living at a Residential Care Facility for the Elderly (RCFE) comes with a multitude of important benefits, it is certainly not an inexpensive proposition. With a vast majority of facilities costing thousands of dollars each and every month, it is absolutely critical for elderly individuals and their families to find the most viable means of paying. To make matters even more difficult, most RCFEs in operation accept payment only from private sources rather than government-run programs like Medicaid and Medicare. As prior owners and managers of these facilities, our team at InsureMyRCFE has great insight into the best ways to afford living there. Please continue on for some important, practicable suggestions.
Prioritize Savings and Utilize Available Resources
One of the best means of remaining financially solvent and having the ability to pay for an RCFE post-retirement is to save up as much money as possible over time. While this may seem like an obvious point, many individuals still fail to conserve enough financial resources to carry them through their later years to begin with, let alone afford the massive expense of assisted living. Saving is one of the most effective ways to help future proof yourself economically speaking. As financial professionals are aware of many accounts and programs that can successfully grow investments, it is also worthwhile to work with one if possible to better plan for predicted and theoretical future expenses.
Get the Most out of Your Real Estate Assets
If you own a home, there is opportunity to leverage your property and accrue additional income. One option is to sell your house and put those funds toward the cost of living at the RCFE. This can be particularly advantageous if it is a “seller’s market” where competition among home buyers drives prices up higher. In such a scenario, you could end up getting more money than you thought possible for your home. Besides putting your home on the real estate market, another potential option is getting a reverse mortgage if you have sufficient equity built up.
Use Investments and Retirement Funds to their Fullest Extent
You’ve worked hard for your money, and it’s time for that money to now do its part in helping you meet your financial obligations. If you took advantage of a retirement plan offered by your employer, such as a 401K or a pension plan, you should look to put at least some of that accrued retirement income toward paying for the RCFE. You should also look into what social security benefits you have available that can be made use of for this purpose. If you served our country in the armed forces, you may potentially qualify for certain veteran-specific benefits that can contribute toward covering assisted living expenses.
Insure Yourself for the Future
Certain insurance policies, specifically life insurance and long-term care insurance, can help make RCFE living more affordable. Certain life insurance policies available today enable the insured to take money from the policy, and subsequently use that money to help with assisted living costs. As long-term care insurance is designed to assist with healthcare-related expenses as one gets older, such policies could, depending on the specific terms involved, help you afford living at an RCFE.
If you have any questions regarding the information presented above, please do not hesitate to contact us at (805) 413-5668.
