When an older adult living with Alzheimer’s disease or other form of dementia needs more care than their family can provide, they require the support and expertise of professional memory care assistance.
Memory care communities are designed to support and care for people with Alzheimer’s disease or other forms of dementia. These communities provide specialized programs with professionals who are educated specifically in memory care.
For instance, Allegro’s Ensemble Memory Care Program provides customized care designed around recent memory care research in a safe, secure, and nurturing environment.
In addition to finding the best memory care community for a loved one, families have the added financial stress and responsibility of covering the cost of memory care.
Memory care can be expensive, creating a financial challenge for families. According to Genworth’s Cost of Care Survey, an annual stay in an assisted living community can cost as much as $54,000 annually or more, especially if it involves memory care services.
In this article, we’ll give you seven valuable tips to help navigate and cover the cost of memory care to ensure your loved one receives the care and support they deserve.
Before deciding how to pay for memory care, consult with your financial team (CPA and financial advisor) to make sure you make financially smart decisions.
A financial advisor can analyze your complete financial picture and provide valuable insights into how to cover memory care costs and optimize your financial resources.
Personal savings and investments are the easiest way to cover paying for memory care. A 401k, IRA, personal property, and other investments can all be used to pay for memory care.
If your loved one currently has long-term care insurance, you’re in luck! Long-term care insurance policies cover expenses related to long-term care services. In addition to medical care, long-term care insurance can cover help with personal care such as bathing, toileting, and grooming.
Long-term care insurance may cover expenses related to memory care. Policies vary, so make sure to consult your insurance professional.
Although life insurance policies are typically thought of for death benefits, they can be cashed in (converted) to cover memory care costs.
Speak with your insurance agent and CPA to ensure you understand the pros and cons of cashing in life insurance.
Veterans or their surviving spouses can utilize the VA Aid and Attendance benefit to help cover the cost of memory care. This benefit provides an additional monthly payment to the monthly VA pension for eligible veterans or surviving spouses who meet at least one of the following requirements:
There are specific requirements to qualify for the Aid and Attendance benefit, so check the requirements carefully to ensure eligibility.
Your home is one of your most significant assets and a financially savvy way to pay for memory care. Below are a few ways to use the equity in your home to pay for memory care:
A reverse mortgage allows people aged 62 and older to borrow against a portion of their home’s equity. Payments can be made in a single lump sum, monthly installments, or as a line of credit.
Selling a large home or having an estate sale can create funds to pay for memory care.
Renting a home or even utilizing a home as a vacation rental is a creative way to keep your home and free up money to pay for memory care.
Seniors with limited income or financial resources may qualify for Medicaid benefits that may help with some memory care expenses. Medicare covers some costs associated with a memory care community. Check with your local Medicare and Medicaid offices for more information.
Paying for the cost of memory care doesn’t have to be stressful.
You can navigate memory care costs by understanding and exploring the various financial resources, consulting with a financial professional, leveraging insurance or your home.
Connect with a friendly advisor for questions about Allegro’s Ensemble Memory Care program. Explore the funding options for paying for senior living, download our free Guide to Funding Senior Care & Housing.