Covering the cost of care

Senior Living Financial Options

“How will we pay for this?” No matter the subject, this question can be overwhelming. But when it comes to senior living, you may find some relief in the fact there are many financing options available that meet individual needs.

Privately Funded

Private funding is the option most people choose when paying for senior living. In some states, Medicaid is accepted for assisted living, but there isn’t a federal program currently.

Long-Term Care Insurance

A long-term care insurance policy helps cover the costs of care when you have a chronic medical condition, such as Alzheimer’s disease. Since you won’t qualify for long-term care insurance if you already have an incapacitating condition, the best time to consider this option is when you are in your 50s.

Converted Life Insurance

It’s possible to convert your life insurance policy into a defined amount of long-term care services. The program is structured to allow you to gain Medicaid eligibility.

Bridge Loan or Senior Living Line of Credit

If your loved one is selling a home to help pay for senior living costs, a short-term “interest only” senior line-of-credit loan can cover senior living costs until the sale is made. Then, the borrower pays off the loan with a balloon payment while the lender continues making payments to the senior living community.

Deferred Annuity

Here, an investor can place a lump sum of money into a deferred annuity and withdraw the money tax-free to pay for senior care. It can be funded with cash, another annuity, or a whole or universal life insurance policy.

Veteran Benefits

If your loved one is a veteran or spouse of a veteran, he or she may qualify for payments earmarked for senior living. Qualification and application information for the Aid & Attendance Benefit is available online from the Department of Veteran Affairs.

State Non-Medicaid Programs

Many states offer programs other than Medicaid to help with senior living costs. provides a state-by-state list of eligibility requirements and benefits.


For more information about and financial options for senior living, we encourage you to visit the National Institute on Aging, a branch of the U.S. Department of Health and Human Services.

And, of course, the experts at Heartis® Senior Living are always available to assist in the financial planning for senior care. Please contact the Heartis Senior Living community closest to you for more information. The team will be happy to talk you through all of your options.