The social security income and savings are not sufficient for many people when it comes to paying for the assisted living. What they do is they consolidate the different sources of income which include assistance from relatives, proceeds from the home sales, insurance from friends, and contribution from friends. This article looks at the different ways that can help the elderly manage the assisted living.
Tapping your resources
If you have been paying the insurance premiums for more than ten years and you have an alternative source of income, you could take advantage of the built-up cash value. If you withdraw the cash on the cost basis or borrow from the policy, then you will not be taxed in any way.
However, if you choose to cash on the policy entirely, you will be required to pay tax on everything except the cost basis. One of the best ways of addressing this is withdrawing the cost basis and then borrowing the remainder. Patrick Simasko explains better how you can tap your resources for assisted care living.
Buying right every time
Buying right every time will help you to afford the assisted living care. You should first determine whether you are eligible for the benefits that the veterans get. We have a class of people that is the veterans themselves and the veteran survivors who are eligible for a pension from the relevant body. Individuals who document their mental or physical restrictions are typically eligible for the special monthly pension.
They get an increase in the pension that is paid to them on a monthly basis. Veterans who meet particular disability or age, have certain net worth, and those who have served the nation during a time of conflict are usually eligible for this type of pension. If either is the spouse is dead, then the surviving spouse must be able to meet the requirements as well.
Taking out a home loan
One of the best ways that the elderly can afford the assisted living care is by taking a home loan. We have the home equity lines of credit and the home equity loans which such individuals can take and utilize the same.
When you decide to take this approach, make sure that you shop for the lowest setup costs which must include things such as origination, appraisals, the cash for processing the loans, and the document preparation.