Evaluating Your Independent Living Options

In addition to using private funds, you might be able to finance a move to an independent living community in a few other ways:

• Explore a life settlement company: One option to consider is selling a life insurance policy you no longer need to a life settlement company. These companies will purchase life insurance policies from older adults for an amount greater than the surrender value. While the price won’t be as much as the face value of the policy, it can help you finance this transition. Talk with a trusted financial advisor about this option, and make sure to thoroughly vet any company on your list before making a final decision.
• Talk to a bank about a bridge loan: For many seniors, their house is their greatest asset. They need a profitable selling price to fund their new chapter in life. If the housing market is down at the time an older adult wants to move, it might make sense to hold on to the house for a month or two in case the market rebounds. The same is true of investments and other assets. You may need to wait for an asset to mature to avoid penalties and fees. In situations like these, a bridge loan can be helpful. You can work with a trusted financial institution to obtain a short-term loan. This can help pay for independent living while you wait for assets to be liquidated or for your home to be readied for sale.
• Utilize skilled home health services: While your Medicare won’t pay for independent living, the Medicare home care benefit may help with any care needs you have. For example, if you have a chronic disease that requires visits with a skilled nurse or physical therapist, Medicare may cover that cost. You will still have to use private funds to pay for the community itself, but you’ll have the extra help you need to care for your health.