How do I pay for assisted living?

Families are often concerned about how to pay for assisted living costs. So here are the top six ways to cover those expenses.

The first one is private pay and this is the most common form of payment for assisted living. Residents or their families pay out-of-pocket for their care using private funds such as savings, investments, and income from Social Security, pensions, the sale of their primary residence, or other sources. Then there's long-term care insurance. Long-term care insurance policies are specifically designed to cover the cost of assisted living. The amount of coverage and the services covered vary by policy.

Then there's reverse mortgage which is a type of loan in which a homeowner borrows against the equity in their home to receive a lump sum or a line of credit. Some reverse mortgage proceeds may be used to pay for assisted living. Then there are veterans benefits. Veterans and their surviving spouses may be eligible for aid and attendance benefits which can be used to pay for assisted living.

Then Medicaid. Medicaid can pay for assisted living services in some states. To qualify, seniors must meet a certain income and asset requirements. Finally, Medicare. Medicare does not cover assisted living services. However, some Medicare Advantage plans may include a limited number of benefits for assisted living.