How Can I Manage the Cost of Assisted Living in Phoenix?

Man Visiting Senior Male Relative In Assisted Living Facility
Phoenix is a popular retirement destination, but assisted living can be expensive. Here are some ways to help cut down the burden.

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As more seniors age and as life expectancy increases, the cost realities of retirement begin to set in. The specific costs for assisted living depend on a few factors, including where you live and the type of care needed, among other things. Financing the cost of assisted living in Phoenix—one of the top places for retirees to relocate due to warm weather year-round—however, doesn’t have to be as daunting as one might assume.

According to Genworth Financial, the 2019 national monthly average for assisted living care was just over $4,000, or $48,000 annually. Additionally, each day through 2030, 10,000 more Baby Boomers are celebrating their 65th birthdays, with the US Department of Health and Human Services estimating that 7 out of 10 people will need long-term care at some point in their lives. Many seniors will utilize their savings, pensions, or Social Security to cover the monthly costs of long-term care.

Although many individuals would prefer to live at home for the level of comfort, in conjunction with the newest medical monitoring technology, in the end, the total assisted living costs can be more affordable than in-home care. With that in mind, BridgeWater Assisted Living maintains the goal of supporting you in finding the perfect home in one of our distinct locations. With the help of one of our community benefits advocates, you can rest assured that we’ll work with you to confirm your eligibility, walk through the paperwork, and support you in your transition to assisted living.

Below are several traditional ways to pay for the costs of assisted living in Phoenix, with a few creative alternatives that you might not have considered.

Medicaid

Medicaid is a joint program between state and federal governments. It’s available to seniors who have fixed incomes or limited assets, who will need additional assistance covering the costs of retirement and care. Because of the joint nature of the program, each state is responsible for the administration of the program, with respective requirements for eligibility and services provided.

BridgeWater is a Medicaid-certified community that supports seniors with fixed incomes to find the best care. Additionally, for individuals with disabilities, the Arizona Long Term Care System (ALTCS) program may be something for which you can qualify. Our Community Benefits Advocates will have all the up-to-date information on eligibility requirements.

Veteran’s Pensions and Benefits

Veterans have dedicated much or most of their lives to serving others, and it’s with a great honor that BridgeWater is able to offer assistance to those who’ve served our country. Veterans and surviving spouses may be eligible for benefits through their (VA) Pensions Benefits. The costs of assisted living care may even be covered through Aid and Attendance, an additional component of a Veteran’s pension. The current amounts in place to support an individual, a spouse, or a couple vary, and current coverage amounts can be found here through the US Department of Veterans Affairs website or call 1-800-827-1000.

Long-Term Care Insurance

Long-term care insurance can be purchased through private insurance. This policy offers holders more security in paying for long-term care once it’s needed. Much like regular insurance policies, long-term care insurance prices can vary greatly and depend on factors including an individual’s age, overall health, and the coverage amount. Similar to the regular policies, some preexisting conditions, such as having had a stroke, Alzheimer’s, or Parkinson’s, can factor into whether or not you’re approved for this sort of coverage.

Senior woman checking her finances and investments

Some Not-So-Traditional Methods

The following options are best looked at after all other avenues have been pursued with no concrete solutions found. While the notion of investment-based financing may sound nice, it’s still a transaction versus government money, so they add a level of risk that may not be fitting for everyone. As with any sort of investment-based policies or arrangements, it’s best to speak with a financial adviser who may be able to offer more insight into these sorts of programs.

Life Settlements

A life insurance settlement can convert from life insurance funds into money that can pay for long-range care. The company issuing the policy can buy the policy back for a portion of the value, an amount usually between 50 and 75 percent. The company will cover the premiums until the policyholder passes away. At that time, the company, and not the original benefactors of the policy, receive the money.

Reverse Mortgage

Seniors who outright own their homes or only have a minimal amount left on their mortgages may be able to exchange the equity in their home for a loan. This can enable people to trade their ownership without having to start making loan payments. In general, payments won’t start until the home is empty and no longer the primary residence.

Annuities

This option is a contract between an individual and an insurance company that aims to meet retirement and other longer-term goals. A person can either make a lump-sum payment or, over the course of time, make a series of payments. In this arrangement, the insurer will make regular payments to you, starting immediately or at an arranged date in the future.

Financing the Golden Years

Covering the cost of assisted living in Phoenix is a challenge that we’re happy to help you solve. Whether you have a low or fixed income or are using funds from private savings, your pension, or even Social Security, we’re here to walk you through the process. In addition to a high-quality level of care and myriad activities for residents, BridgeWater offers an upscale community with technologically modern living. For instance, our Midtown location is in the heart of Phoenix, with direct access to various venues, restaurants, and activities. Please feel free to visit our website for a complete listing of our other communities in the Phoenix area.

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Rylie is freelance writer, fitness blogger, and travel junkie. Originally from Toronto, she currently resides in Lima, Peru but is always on the move to discover new adventures.

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