Resources

How much do you currently spend to live in your home? How does that compare to the cost of a senior living community? Most people are aware of what they pay on their mortgage or utilities but fail to take into account all the other expenses they incur living at home.

To help you compare your costs, we've provided a handy worksheet. Download this form and take it with you when you visit a senior living community.

Won't my health insurance or Medicare pay for personal care or memory care?

Unfortunately, no. Ordinarily health insurance policies and Medicare usually do not pay for personal care expenses. Medicaid, a federal/state health insurance program, will only pay for care if you've already spent most of your savings or other assets AND live in a skilled nursing facility (nursing home).

What will long-term care insurance cover?

Long-term care insurance typically covers the cost of:

• Help in your home with daily activities like bathing, dressing, eating and cleaning.

• Community programs such as adult day care.

• Assisted living and Personal Care services that are provided in a special residential setting other than your own home. These services may include meals, health monitoring, and help with daily activities.

• Visiting nurses.

• Care in a nursing home.

When should I buy a policy?

The best time to buy a policy is in middle age while you're still healthy. Many people don't think about long-term care until they are in their 70s or 80s and their health begins to fail. At these ages, you may be too high a risk factor for an insurer to cover you, or if you do qualify the premiums may be astronomical.

Is long-term care insurance right for me?

It depends upon your situation. Long-term care insurance is expensive. An individual who's 65 years old and in good health can expect to pay between $2,000 and $3,000 a year for a policy that covers nursing home care and home care with premiums adjusted for inflation. You will need to consider your current assets and income carefully. Discuss this with your financial advisor.

What should I look for in a policy?

• Coverage. Some policies pay only for nursing home care or home care. Some provide a mixture of care options that include nursing homes, assisted living communities and adult day cares. Some will pay for a family member or friend to care for you in your home.

• Daily or Monthly Benefit. This is the amount of money the insurance company will pay for each day or month you are covered by the policy. If the cost of care exceeds your daily or monthly benefit, you will need to pay the difference out of your own pocket.

• Benefit Period. This is the length of time you will receive benefits from your policy. You can choose a benefit period that spans two to six years or for the rest of your life.

• Elimination or Waiting Period. There is a waiting period anywhere from 0 to 100 days. During this time, you must pay for all of your long-term care expenses out of your own pocket.

• Inflation Protection. Make sure your policy includes inflation protection. There are two kinds: the right to add coverage at a later date and automatic coverage increases.

What features are important?

Make sure your long-term policy:

• Clearly explains when you will be eligible for coverage and how your eligibility will be determined.

• Does not require that you spend time in a hospital before receiving benefits.

• Will be renewed as long as you pay the premiums.

• Lets you stop paying premiums once you begin receiving benefits.

• Has one deductible for the life of the policy.

• Automatically covers pre-existing conditions if you disclosed them when you applied.

• Offers choices for inflation protection including an automatic increase in your benefit on an annual basis or a guaranteed right to increase your benefit.

• Allow you to downgrade your coverage if you cannot afford the premiums.

• Includes coverage for dementia.

• Provides at least one year of nursing care and home health coverage.

• Allows the right to cancel the policy for any reason within 30 days of purchase and receive a refund.

What is the aid and attendance benefit?

This is a benefit paid to veterans or spouses of a veteran who require the "aid and attendance" of another person for activities of daily living (ADLs) or for those that are homebound. This benefit is awarded in addition to the veteran's basic monthly pension.

This Special Pension (part of the VA Improved Pension program) is available to individuals who reside in assisted living communities, residential care homes, skilled nursing facilities and those receiving personal in-home care.

Is the benefit available to all veterans?

The benefit is specifically for veterans who have served during wartime.  A Veteran with 90 days of active duty with at least one day during active Wartime is eligible for this benefit. A surviving spouse of a War Veteran may be eligible if married at the time of death. The individual must qualify both medically and financially.

How do you apply for the benefit?

Most senior living communities can refer you to a professional who will assist you in the completion of the necessary documentation. You may also apply by contacting your Regional Veteran's Administration Office. To locate the closest regional office to you, visit the VA website.

How long does it take for the benefit to be approved?

On average, it can take between 10 - 12 months for benefits to be approved. The good news is that if approved, the benefit is awarded retroactively to the time of application.

If my parents were divorced, is my mother (as a former spouse) eligible for the benefit?

Typically, no. If you have other questions about the Veteran's Aid and Attendance Benefit, please call us. If we can't answer your questions, we'll be sure to connect you to someone who can.

For more information about this benefit, please contact your local Veteran's Administration office.

You, or the person paying for your care, may be eligible for certain deductions on your federal tax return, depending on the type of services and the level of care you require.

The IRS allows deductions for the cost of housing and meals if you are receiving long-term care in a home or community for the aged due to chronic illness or the inability to live alone. Assisted living residents receiving personal care services may qualify for the deduction.

To qualify, you must require assistance with at least two activities of daily living (such as eating, toileting, transferring, bathing and dressing), and a physician must certify that you have been unable to perform these functions without assistance for at least 90 days.

The same deduction can be used for people who require substantial supervision to maintain their health and safety because of cognitive impairment such as Alzheimer's disease.

An adult child paying for their parents' care may also qualify for the tax deduction if the parent is a dependent.

For a parent to qualify as a dependent, he or she must:

•    Be related to the child or have lived with the child for the entire year as a member of the household;

•    Be a U.S. citizen or resident, or a resident of Canada or Mexico, for some part of the calendar year in which the tax year began; and the child must have provided over half of the total support for the parent for the calendar year.

Tax deductions can be a useful way to alleviate the cost of care. However, please note that Heritage Senior Living does not provide tax advice for its residents, potential residents, or families, and this information should not be considered as such.

For more information about possible deductions, please consult with a tax adviser.

Where You Live Matters

The American Seniors Housing Association (ASHA) has a helpful compilation of resources available at whereyoulivematters.org.