National Healthcare Decisions Day: The Importance of Planning for Seniors

While most seniors will eventually need long-term care, only 13% can afford assisted living, according to The Harvard Joint Center for Housing Studies. This puts a strain on familial caregivers and fosters resentment between loved ones. It also stops seniors from aging comfortably and with dignity.

Luckily, paying for assisted living is made possible with long-term care funding.

Read on to learn about assisted living costs and how you can reduce the burden on yourself and your loved ones.

Assisted Living Costs: What to Know

Long-term care costs in North Carolina are on the rise by 10% annually.

According to Genworth's 2024 statistics, a North Carolina assisted living community is about a $76,245 annual expense.

This average cost comes out to a monthly $6,353.

Community Reputation

However, specific senior care expenses depend on several factors. The first one is, of course, the specific community you choose.

Higher-quality assisted living communities will charge more than those with a lower quality of life. Paying for assisted living means finding a good value, not just going for the cheapest option.

Higher rent may come with invaluable programs and amenities that:

Enhance cognition
Keep seniors social
Help residents discover new hobbies
Let seniors engage with passions
Keep seniors healthy with chef-prepared meals
Enhance wellness with fitness classes and informational lectures

This is well worth the extra money. You get more bang for your buck.

Level of Care

Prices may also fluctuate based on the level of care your loved one needs. Those in memory care need more help than assisted living residents, which costs more. They also work with specially trained and certified experts who have experience with cognitive decline.

However, even those within standard assisted living won't require the same levels of care.

Some residents may need help exclusively with bathing and hygiene. Others may require assistance getting around their apartment and navigating community amenities in addition to hygiene-related care.

Remember that your loved one gets what you pay for. The best North Carolina communities make personalized care plans by:

Talking with residents and their families about what challenges they face
Discussing what tasks they can complete independently to maximize autonomy
Creating a comprehensive care plan
Getting approval for the plan from the family of the new resident
Ensuring that the plan can adapt to shifting needs

Paying a little extra money means getting effective care. You won't be throwing cash away paying for services that don't truly help your loved one thrive.

Paying for Assisted Living Out of Pocket

Many families initially try to pay for assisted living with personal funding sources. These may include:

Long-term savings accounts
Checking accounts at the bank
Funds from liquidating assets like the senior's old home or vehicle
Money from pension accounts
Social security income

These are a good starting point when paying for senior care.

A professional financial advisor can look into these accounts and help you set up a prudent budget. They also can consider and look into other sources of personal funding that you haven't considered.

Loans and Alternative Funding

Luckily, personal funding isn't the only option for families whose loved ones need care. There are loans for those struggling with paying for senior living.

The most obvious are long-term care loans.

These loans come from a bank or private lender. You or your aging loved one apply for a loan by telling the lender:

Your credit score
Your loan payment history
The reason you need the loan
How much money you need
What timeframe you expect to pay back the loan in

The lender will offer you a lump sum of money. The amount will depend on your credit history and financial trustworthiness.

This loan is specifically meant to help families pay for long-term care. You apply it to the senior living community's monthly expenses. Then, you pay the loan back over time with a pre-determined interest rate.

This is a great choice for families who:

Need long-term care funding quickly
Want a lot of money at once
Have good credit
Plan to supplement personal funding sources with a little extra money

Long-Term Care Insurance Options

Loans aren't the only way to get help paying for assisted living. Long-term care (LTC) insurance is also designed to help aging Americans.

Traditional LTC insurance involves getting some of your senior's monthly assisted living fees paid for. This help comes every month when the payment is due. You pay a premium and get this assistance.

Hybrid LTC insurance is similar, but it lets families get a portion of their paid premiums back when the policyholder passes away. It can make an emotionally painful time more financially secure.

Some people also choose to use their life insurance policy to pay assisted living expenses.

Many life insurance policies come with a rider. This life insurance rider lets families take out some of the policyholder's death benefit while they're still alive. The aim is to help them pay for long-term care.

Regardless of which option you choose, take out the policy as early as possible. Premiums are lower for those who buy the policy in advance. You can save money in the long run this way.

The Ins and Outs of Financial Planning for Seniors

Regardless of how you plan to pay for assisted living, you should:

Discuss what features and amenities are most important to your loved one
Prioritize those features when selecting an assisted living community
Talk with assisted living caregivers to learn specific monthly costs
Talk with an expert financial advisor
Create a budget for personal funding sources
Consider the money received from alternative sources of funding
Write out a comprehensive budget

This can reduce stress and ensure families get the care they need.

Beyond Basic Senior Care Expenses

Paying for assisted living can be challenging, but choosing high-quality care is critical for families who want their loved ones to age happily. Now that you know some long-term care funding options, it's time to learn more about the best NC assisted living community.

TerraBella Knightdale offers a wide range of activities and events for an invigorating and exciting lifestyle. Our compassionate caregivers are dedicated to helping those with cognitive and mobility issues stay happy and healthy.

Contact us to learn more about our beautiful amenities and schedule a tour of our community in Knightdale, NC, to see them for yourself.