As you get older, you may find that you need extra support with everyday activities or you may no longer want to deal with home maintenance and upkeep. While you do not need nursing or medical care, you could use help with transportation, laundry, meal preparation, and other essentials of living. Alternatively, perhaps you could use more companionship or would like to make new friends. Independent living communities, like Franklin Park® Senior Living, can provide a new living environment that fulfills these needs. When the time comes that new care is needed, Franklin Park® Senior Living also offers assisted living and memory care services.
While you may find the idea of an independent living community attractive, how do you pay for it? Let us discuss several ways to pay for independent living that you might not have previously considered.
1. Maximize Your Social Security Payments
If you or your spouse are physically and mentally able to delay retirement, it can make a big difference in the monthly check you receive monthly from the Social Security Administration. Those who retire at the minimum age of 63 receive smaller payments than those who wait until they are at least 65 and even up to 67 in some cases. Since you receive payments for the rest of your life, starting out with a larger monthly check can put a lot more money in your bank account.
Many people do not take advantage of other social security benefits available to them, including payments for surviving and divorced spouses and payments to help in caring for a disabled dependent. If you have not already retired, we recommend getting expert advice from a financial planner.
2. Invest in an Annuity
An annuity gives you the opportunity to take your pension or other funds set aside for retirement and use it to obtain a guaranteed income source that pays out until the time of your death. This payment option is an especially good choice if you are concerned that your savings will not last long enough to pay for the independent living services you desire.
Annuities work like a contract and are a combination of investment and insurance. After making an upfront investment in the annuity, you receive a contract that specifies a future date when you will receive a lump-sum payment or a series of payments for the remainder of your life. Best of all, the government does not consider the original annuity investment as income when you apply for Medicaid.
3. Cash in Your Life Insurance Policy
If you have a life insurance policy, check to see if the issuer offers living or accelerated benefits. With this clause, the life insurance company may buy back the policy and pay you up to 75 percent of its face value. However, some companies only allow this in the case of a terminal illness. Another option is to sell the policy to a life insurance settlement company. You can expect approximately 50 percent of the face value if you go this route.
4. Sell or Rent Your Home
Moving to Franklin Park® Senior Living means you will not have the burden of household repairs and chores. The proceeds of the sale of your home can help pay your expenses. You can also choose to retain ownership and rent your home for an additional monthly income. Our staff is happy to help put you in touch with a realtor.
5. Let Us Know How We Can Help
These are just a handful of ways you can come up with the funds you need to pursue an independent living lifestyle. Please contact us for additional suggestions or for help navigating the ones listed above.