For seniors considering a move to assisted living, one of the first questions they ask is about the costs. At communities managed by The Goodman Group, we understand the importance of making this exciting transition with confidence and clarity. We spoke with Dustin M., regional director of sales and marketing at The Goodman Group, who shared his insights on navigating the finances of assisted living.

Will I have to sign a contract?

Starting your new chapter in assisted living begins with signing a lease agreement or contract that outlines the terms of residency, including the monthly cost and an addendum outlining care costs. Most senior living communities offer a month-to-month agreement that can be canceled with appropriate notice — typically 30- to 60-days.

How much will assisted living cost?

The cost of assisted living varies greatly and is dependent on many factors. These include location, size, and age of the community, the amenities offered, and the specific lifestyle and health care options each resident selects. In addition to the first month’s rent, a new resident will also pay a community fee. It’s a good idea to visit several communities to decide which is best for your needs and that meets your budget. Here is a guide to help you find what is right for you or your loved one.

"Consider the cost compared to your current living expenses, potential health care needs and the quality of life improvements,” suggests Dustin. “Most communities include three meals a day, weekly housekeeping, transportation, utilities and more, which really starts to close the gap in monthly expenses."

How can families plan financially?

Most communities will be happy to set up direct-deposit payments from your bank account, so you don’t have to worry about payments being made on time. However, if you’d rather write a monthly check, most communities accept them, as well. If you have a family member handling your finances for you, they have the same options.

Dustin recommends starting early. “Invest in 401k/Roth IRA, long-term care insurance or money market funds that produce monthly dividends. Create a budget by assessing those income sources and adjusting for future rate increases and potential care needs. Having a clear picture of current income, assets, and sometimes family contributions will help you plan for your senior living experience."

Does insurance cover any of the cost?

Only certain types of insurance cover assisted living.

• If you have long-term care insurance, it will cover part of your monthly costs.
• If you or your spouse is a veteran and qualify for the Aid and Attendance benefit, that will also contribute to your monthly expenses. A surviving spouse may also qualify. You can learn more about eligibility and how to apply for benefits at VeteranAid.org.
• Medicare and Medicaid do not cover the cost of assisted living.

"Two plans we encounter most often are long-term care insurance and VA Aid & Attendance,” shares Dustin. “The VA assistance program for veterans and spouses can provide several thousand dollars per month depending on care needs. Although not all communities participate, there are state and federal programs available under certain qualifications."

Dustin also highlights some common misconceptions. "More often when financing is discussed, families simply do not know what options are available to them," he points out. "For example, many have access to VA benefits, Bridge Loans to cover costs until a home sells, or long-term care insurance, to name a few."

What happens to the cost if my needs and services change?

This varies by community. Some communities start with a base rate and add charges as services are needed. This is commonly known as a step-up program.

Other communities charge rates based on all-inclusive services, up to a specific number of hours. These services include bathing, dressing, grooming and medication management. This is often referred to as a bundled program.

Making the Right Decision for Your Future

As you think about the financial aspects of assisted living, remember that this is about finding the right community for you or your loved one's needs, preferences, and budget. Dustin advises, "Approach the conversation with sensitivity and understanding of their needs and financial situation. One goal should always be discussing assisted living before a major health issue arises, giving parents the opportunity to visit and choose a community rather than facing an emergency situation."