How do families in Portage cover the high cost of senior care? According to AHCA, there are more than 22,500 beds in assisted living communities in Indiana. Paying for assisted living can feel overwhelming, especially when trying to understand the different options.
Portage is a city in Northwest Indiana known for its proximity to Lake Michigan, access to Indiana Dunes, and a mix of industry and natural beauty. Let’s take a closer look into assisted living costs in Portage, the resources available to help, and smart ways to manage senior care expenses.
Financial Planning for Aging: Common Sources
Paying for assisted living often means pulling from more than one source of income. Most families in Portage don’t rely on a single method to manage senior care expenses. Instead, they use a mix of savings, benefits, and other funds.
These are the most common options:
- Social Security and Pensions
- Retirement Savings and Investment Accounts
Social Security and Pensions
Many older adults in Portage depend on monthly Social Security payments to help cover assisted living costs. While this income helps, it usually isn’t enough on its own.
Pensions can help close the gap if the person worked in a field that offered retirement benefits. These regular payments give families a steady base, but other sources are usually needed to meet the full cost of care.
Retirement Savings and Investment Accounts
Some families use money from 401(k) plans, IRAs, or personal savings. These funds can be used flexibly and may offer a larger amount upfront.
People often withdraw from these accounts over time to stretch them out. Planning ahead helps keep this process from becoming stressful.
Long-Term Care Insurance: Pros and Cons
Long-term care insurance can help cover senior care expenses, but it works best when planned early. Some families in Portage use this type of coverage to help manage assisted living costs.
It can lower out-of-pocket spending and reduce stress over time. The benefits depend on when the policy was purchased and what it includes.
These are the three main points to consider:
- What Long-Term Care Insurance Covers
- When To Buy It
- What To Watch For In The Fine Print
What Long-Term Care Insurance Covers
Many policies pay for help with daily tasks like bathing, dressing, and eating. Some will cover services provided in an assisted living setting.
Others may focus more on nursing care or home care. It’s important to know what the plan includes so there are no surprises later.
When To Buy It
Long-term care insurance works best when it’s bought early, often in a person’s 50s or early 60s. Waiting too long can make it harder to qualify or lead to higher monthly costs. People in poor health may not be approved at all.
What To Watch For In The Fine Print
Every plan is different. Some have waiting periods before benefits begin. Others limit how long they’ll pay.
Families should read the details and ask questions. This helps them decide if the policy fits their long-term care options.
Veterans Benefits and Aid for Eligible Seniors
The Aid and Attendance benefit gives extra monthly funds to veterans or surviving spouses who need help with daily tasks. It may include bathing, dressing, or eating. The money can be used toward assisted living, which helps ease the financial burden on families.
To qualify, the person must be a veteran who served during active wartime or their surviving spouse. They also need to show that they need help with basic daily care. Income and asset limits apply, so families may need to gather paperwork before applying.
This benefit adds to a veteran’s regular monthly VA payment. It can be a big help when other income sources fall short. For many families, this extra money helps cover the gap between Social Security and the full cost of care.
Using Home Equity or Selling a Home
For many families in Portage, a home is the largest financial asset they have. When paying for assisted living, some choose to use this asset to help with costs. This step can provide access to funds that may not be available through income or savings alone.
There are three main ways families often use home value to manage care:
- Selling the Home
- Using a Reverse Mortgage
- Exploring Bridge Loans
Selling the Home
Selling a house can give families a large sum of money to help with assisted living costs. It works well when the person moving into care no longer needs to keep the home.
The funds from the sale can stretch across several years, depending on the price of the home and the cost of care. For many, this is a simple way to make retirement living affordability more realistic.
Using a Reverse Mortgage
A reverse mortgage allows a homeowner aged 62 or older to borrow against the value of their home. The money can be received in different ways, such as a lump sum or monthly payments.
It doesn’t have to be repaid until the person moves out or passes away. This option works best when one spouse stays in the home while the other moves into care.
Exploring Bridge Loans
Bridge loans are short-term loans that help cover senior care expenses while waiting for a home to sell or other funds to become available. These can be helpful when a family needs to move quickly but hasn’t yet sold property or accessed long-term funds.
Paying for Assisted Living in Portage
Paying for assisted living doesn’t have to feel out of reach. With the right mix of planning, resources, and support, families in Portage can find solutions that work. Taking small steps now can ease the financial strain later and help make care decisions with more confidence and peace of mind.
At Rittenhouse Village At Portage, we believe staying active and social brings joy and purpose to daily life. Through our Celebrations Activities & Events program, we enjoy games, themed parties, outings, and more. With a full-time activities director, there’s always something fun or meaningful planned to keep life engaging and lively.
Get in touch today to find out how we can help with your loved one’s care.
