Financial Considerations for Senior Living

Depending on the terms of the policy and an individual’s needs, long-term care insurance may help cover licensed senior living and care services. Benefits are often triggered when a person can no longer independently perform at least two Activities of Daily Living (ADLs), such as bathing, dressing or grooming, or has a qualifying cognitive impairment. Because Belmont Village communities are licensed throughout, coverage may remain applicable even as care needs change.

For many families, the sale of a home is an important part of the transition to senior living. Home equity, retirement assets and existing financial resources are often used to support room, board and care services. Some families also explore short-term bridge financing while a home is being listed or sold.

Veterans and surviving spouses may qualify for financial assistance through Veterans Administration programs such as the Aid and Attendance pension benefit. These benefits, most of which are tax-free, may help offset the cost of care and senior living services for eligible individuals who meet wartime service and financial requirements. Benefit availability and eligibility vary based on personal circumstances.

Our veterans are valued members of Belmont Village communities, where we foster a culture of camaraderie and respect. We encourage them to share their stories through our unique recognition program. Visit our American Heroes Virtual Gallery to learn more. 

While Medicare generally does not cover room and board in senior living communities, depending on eligibility, it may help pay for certain medical services that may be received in residence at a community. This can include physician care, rehabilitation therapies, outpatient services, hospice care and some home health support. Coverage varies by plan and individual circumstances.

Belmont Village partners with ElderLife Financial Services, a company that helps families access short-term bridge loans during transitional periods. These loans are commonly used while waiting for long-term funding sources such as home sale proceeds or long-term care insurance benefits to become available.

Some families explore converting an existing life insurance policy into funds that may be used for senior living or care expenses. Depending on the policy type and value, this option may provide greater financial flexibility than allowing a policy to lapse or surrendering it for limited cash value.

Family members who contribute financially toward senior living expenses may wish to discuss potential gift tax conversions with a qualified tax professional. Federal tax laws and exemptions can change over time, making individualized financial guidance critical before making decisions.

Former NFL players who qualify for benefits through the NFL Player Care Plan may have access to additional senior living resources and care coordination support. Eligibility and available benefits depend on individual plan participation and qualifications.

Knowing what type of community best fits your needs is an important first step and will affect your financial planning. For example, a Continuing Care Rertirement Community (CCRC) offers multiple levels of care on one campus, but requres a long-term commitment. Most charge a substantial entrance fee—often six or seven figures, sometimes partially refundable—in addition to monthly fees for services and maintenance. Depending on the licensing model, a change in care needs may require a move to another area of the campus. Be sure to ask what is included in the fees and how costs may change over time. 

Assisted Living communities, such as Belmont Village, are more likely to operate on a rental model, with no significant entry fee or long-term contract. Monthly billing covers housing, meals, utilities, services, amenities, and 24/ staffing, with care charges based on individual needs. Because Belmont Village licenses its communities to the highest level of care provided throughout the building, residents can often remain in the same apartment as needs change, and couples with different care needs can typically continue living together.