According to CareScout’s Cost of Care Survey, the median monthly cost of assisted living (private, one bedroom) in the United States was $5,900 in 2024. Considering nearly 70% of people aged 65 or older today will need some form of long-term care services, older adults—including your own aging loved ones—will need to have a plan in place to pay for assisted living and other elder care options.
If you or your loved one cannot pay for an assisted living community out of pocket, the following options may help.
13 Ways to Pay for Assisted Living
1. Long-term Care Insurance
Long-term care insurance (LTCI) is a type of private insurance that pays for long-term care services. Specific elder care options that LTCI providers often cover include in-home care services, adult day care services, and residential care options like assisted living, memory care, and skilled nursing care (nursing home care). Independent living is usually not covered under these policies.
Providers of LTCI policies include:
- Mutual of Omaha
- New York Life
- Genworth
- Nationwide
2. Medicaid
Medicaid is a state-sponsored health insurance that can cover senior care services, including assisted living. What, exactly, a state’s Medicaid program covers varies by state and the exact care needs of the senior in question.
For more information on Medicaid coverage, please visit CMS.gov.
3. State-sponsored Waivers
Many older adults need help with activities of daily living (ADLs), like bathing and dressing. State-sponsored waivers can help qualifying older adults access the personal care services they need.
The official Medicaid.gov site lists all official state waiver programs that help pay for health care and senior living services.
4. Social Security
Social Security can pay out several types of benefits that can help cover the cost of assisted living.
Specific Social Security benefits that may help pay for services in a senior care facility include:
- Supplemental Security Income (SSI)
- Social Security Disability Insurance (SSDI)
- Retirement benefits
- Survivor benefits
- Family benefits
5. Veterans Benefits
The U.S. Department of Veterans Affairs offers several benefits that veterans and surviving spouses or other beneficiaries can use to help pay for personal care services, including those received in assisted living or skilled nursing facilities. The two primary VA benefits that can help cover these costs are the Aid and Attendance Benefits and Housebound Allowance. These benefits are added to monthly VA pensions for qualifying individuals.
6. Housing Choice Vouchers (Section 8)
The Department of Housing and Urban Development (HUD) offers Housing Choice Vouchers (HCV/Section 8) to help low-income seniors access affordable housing options in their area. Individuals must meet strict income eligibility criteria to receive these vouchers.
7. Life Insurance
It’s possible to sell certain life insurance policies for cash, although this method does not pay out a policy’s full value.
People looking to cash in on life insurance policies have two primary options:
- Cash surrender, where someone receives a payment for cancelling their life insurance policy before the insured’s death or before policy maturation.
- Life settlement (viatical settlement), where someone sells their policy to a third party. While it typically pays more than the cash surrender value, it can be a more time-consuming, complex process to do so.
8. Bridge Loans
Bridge loans are short-term loans; they cover a gap between securing funding sources. In the case of senior living, they can help families pay upfront costs associated with moving to assisted living while they secure other sources of funding.
9. Reverse Mortgage
Homeowners can use a reverse mortgage to effectively borrow against their homes’ accumulated equity. They can receive tax-free payments in a lump sum or receive payments over time, all without requiring the individuals to make monthly payments. However, people who opt for reverse mortgages can face high fees and risk losing out on eligibility for other sources of funding, such as Medicaid.
10. Home Equity Loans
Homeowners can also tap into their homes’ equity with a home equity loan, which can pay out money upfront for those who need it right away. This loan effectively acts as a second mortgage on the home. It requires monthly payments with (usually) single-digit interest rates.
11. Home Equity Line of Credit
A home equity line of credit (HELOC) allows homeowners to open up a line of credit, where they can then borrow money as needed. People only need to pay interest on the money borrowed.
12. Non-profit Assistance
Many non-profit organizations and charities offer assistance programs for low-income seniors, including assistance with senior housing. Older people and their families can use the Eldercare Locator to find a local Area Agency on Aging to see what options are available in their area.
13. Family Support
Many family members step into family caregiving roles when aging relatives need help in their day-to-day lives. This support can be financial (helping to pay for home health care services or residential care services) or physical (helping the older adult live safely in their own home).
FAQs
Where can seniors get financial assistance for senior living?
Area Agencies on Aging can help seniors access local, state, and federal government assistance along with charity programs and private pay payment options that may cover the costs of senior living.
Does Medicaid pay for assisted living?
Medicaid may cover some or all of the costs associated with assisted living facilities. For more information, please visit the official Centers for Medicare & Medicaid Services site.
Does Medicare pay for assisted living?
No, Medicare typically does not cover any senior living costs.
What happens when you cannot afford assisted living?
There are many options available for families that worry about paying for assisted living with no money, from state-sponsored programs and waivers to private pay insurance to loans.
At Avista Senior Living, we know finances can be a source of stress for many families. We want to reduce that stress. We help all incoming and current residents find the payment plans that work for them—including what happens if they run out of their current sources of funding.
Disclaimers: This article is for informational purposes only and does not constitute financial advice.