Financial Planning for Senior Living

Welcome to The Kensington Falls Church, where we understand that helping your loved one transition into senior living is a significant and emotional decision. 

We know you want the best care for your parent, spouse, or loved one, especially when dealing with Alzheimer’s, dementia, or memory loss. Financial planning is essential to this process, ensuring you can provide the highest quality of life for your loved one without unexpected financial strain.

By planning, you gain peace of mind knowing that your loved one’s future is secure. Financial planning lets you focus on their well-being, ensuring they receive the best care possible. 

At The Kensington Falls Church, we help families navigate the financial aspects of senior living, providing guidance on budgeting, exploring assistance options, and planning for long-term needs.

Why financial planning is essential for a move to senior living

• More options: Early planning allows you to explore a variety of financial programs, insurance policies, and investment opportunities.
• Informed decisions: With more planning time, you can make thoughtful choices about your loved one’s care and financial arrangements.
• Financial stability: Early preparation helps ensure you have the necessary funds when they are needed, reducing the risk of financial challenges.

With the cost of senior living, especially specialized care for Alzheimer’s and dementia, steadily increasing, early financial planning becomes essential to avoid financial surprises. 

Your step-by-step guide to financial planning

Planning for your loved one’s future in senior living can feel overwhelming, but breaking it down into manageable steps can make the process much more straightforward. 

Step 1: Assess your current financial situation

The first step in effective financial planning is understanding your loved one’s financial status. This involves reviewing their income, savings, and investments to understand their financial health.

• Review income: Include all sources such as pensions, social security, and other regular income.
• Assess savings and investments: Make a comprehensive list of assets, including savings accounts, retirement funds, and other investments.

Tip: Make a list of all sources of income, including pensions, social security, and any other investments. This will help you see where you stand financially and what resources are available.

Step 2: Understand senior living costs

Costs can vary widely depending on the type of care needed and the community chosen.

• Housing costs: Monthly fees for assisted living or memory care
• Healthcare costs: Medical services, medications, and personal care
• Lifestyle costs: Meals, activities, and other personal expenses

Tip: Confirm costs associated with assisted living and memory care by contacting The Kensington Falls Church to create a realistic budget. This will help you plan accurately and avoid unexpected financial strain.

Step 3: Explore financial assistance options

Several financial assistance programs and options are available to help cover the costs of senior living. Understanding these can significantly ease the financial burden. 

It’s important to contact the senior living community directly to find out which financial assistance options they accept first.

• Long-term care insurance (LTCI): This type of insurance can cover personal care assistance in assisted living communities. Ensure the policy is in good standing and covers the necessary services.
• Veterans benefits: Wartime veterans and their spouses may qualify for the VA Aid and Attendance Pension, which can significantly offset care costs.
• Third-party insurance: Many seniors have additional insurance policies beyond Medicare. These policies may cover assisted living, memory care, skilled nursing, and respite care. Coverage often requires meeting certain conditions, such as needing help with at least two activities of daily living (ADLs), including grooming, bathing, dressing, incontinence management, and general mobility.
• Life insurance policies: Converting an in-force life insurance policy to a pre-funded account can provide funds for senior living expenses. This process typically has no waiting periods, care limits, application costs, premium payments, or fees.
• Bridge and home care loans: For immediate needs, bridge or home care loans can provide short-term funding to cover senior living costs until more permanent financial arrangements are made.

Tip: Consult with a financial advisor who specializes in senior living to explore all available options. They can provide tailored advice and help you navigate the complexities of each program.

Step 4: Create a budget and savings plan

Setting clear financial goals and creating a budget that includes savings for future care needs is essential. This step ensures you are financially prepared for expected and unexpected expenses.

• Set financial goals: Determine how much you need to save and when. Consider both short-term and long-term goals.
• Create a budget: Outline your monthly income and expenses, ensuring that you allocate funds for future care needs.
• Adjust as needed: Review and adjust your budget regularly to stay on track and ensure it aligns with your goals.

Tip: Regularly review and adjust your budget to stay on track and ensure it aligns with your goals. This will help you stay financially stable and prepared for changes in your loved one’s care needs.