The average daily cost of assisted living in Indiana is now $145, according to the Federal Long Term Care Insurance Program. Sticker shock is real, especially if you’re just starting to look into paying for senior care. Families often feel stuck between wanting the best care and wondering how they’ll afford it long-term.
But you don’t have to choose between comfort and cost. From local veteran programs to overlooked financial tools, there are ways to stretch your dollars without cutting corners on care.
Indianapolis, located in the heart of central Indiana, blends big-city access with hometown convenience, which makes it a smart location for senior living communities with extensive amenities and support. This article breaks down the most practical funding options to help manage senior care costs without sacrificing quality. If you’re feeling overwhelmed, this guide can help you build a clearer, more confident plan.
Personal Savings and Retirement Funds
Many families start with what’s already available: personal savings, Social Security, pensions, or retirement income. It might seem simple, but this is still one of the most common ways to cover senior care costs.
That said, using personal funds alone can be risky without a solid plan. For example, it’s easy to underestimate how long someone might need care. A little planning goes a long way when thinking about how to stretch what you have.
Some options people use include:
- Monthly withdrawals from retirement accounts like IRAs or 401(k)s
- Regular Social Security payments that help cover daily expenses
- Drawing from pension plans or annuities for extra income
Long-Term Care Insurance
Long-term care insurance can help offset major assisted living expenses if purchased early enough. In fact, policies usually pay for things like help with bathing, meals, and medication reminders, services often included in long-term care options like assisted living or memory care communities.
This type of insurance doesn’t always get used, either because families forget it exists or don’t realize how flexible it can be. If you already have a policy, check the terms. Some cover in-home care, others apply to community-based settings.
In some respects, this type of coverage works best when it complements personal funds. You may still pay out-of-pocket at first, but reimbursement from the insurance provider can kick in after a waiting period.
Veteran Benefits Through Aid & Attendance
Veterans and their surviving spouses may qualify for a monthly payment called Aid & Attendance through the VA. This benefit is meant to help cover care in assisted living or memory care when you need help with daily tasks.
To qualify, a veteran must have served at least 90 days on active duty, with at least one day during wartime. They also need to show they need help with activities like eating, dressing, or managing medications.
At Rittenhouse Village At Northside, veterans can access even more savings through our Special Veterans Program, including half off the first month’s rent and $1,000 off the second if approved through Patriot Angels.
Real Estate Assets
Using real estate to fund care is often a smart move, especially when the person moving into senior living no longer needs their house. This approach gives families access to funds without tapping retirement accounts too soon.
Some sell the home outright. Others rent it out to create monthly income. Reverse mortgages are also an option for some, though they come with more restrictions and only apply if one spouse is still living in the home.
This method works especially well when combined with budgeting for senior living tools to track costs and prevent overspending.
Life Insurance Conversions
A traditional life insurance policy isn’t just something you wait to use. In fact, you can often convert certain policies into a cash benefit while the policyholder is still living. This is known as a life settlement or policy conversion.
If someone no longer needs the full policy for end-of-life expenses, converting it into senior care funding might make more sense. These funds can often be paid directly to the care community.
Typical options include:
- Selling the policy for a lump sum to a third-party buyer
- Accessing accelerated death benefits for qualifying illnesses
- Converting to a long-term care benefit plan through a provider
Indiana’s Residential Care Assistance Program (RCAP)
RCAP offers monthly financial support to older adults who qualify based on income and need. It’s designed for those living in licensed residential care communities that offer help with daily tasks like bathing, meals, or medication reminders.
To be eligible, applicants must meet certain asset and income limits. The application process includes a physician’s statement and a financial review. While not everyone will qualify, those who do can receive funding directly applied to their care.
Some benefits of RCAP include:
- Monthly payments made directly to the senior living community
- Support for individuals needing help with basic daily living tasks
- A way to ease senior care costs for lower-income individuals
Family Contributions and Shared Costs
It’s not unusual for siblings or extended family to help cover costs when parents move into senior living. That said, family involvement works better when everyone is clear about expectations, responsibilities, and how much each person is contributing.
Open discussions about financial planning for aging can help avoid tension later. Some families use shared bank accounts or designated payment portals to stay organized. Others split the cost based on income or caregiving support.
Tips for managing shared costs:
- Set clear monthly amounts each person agrees to contribute
- Keep written records or use shared apps to track payments
- Revisit the agreement if care needs increase or change
Planning Ahead For Paying for Senior Care
There’s no one-size-fits-all answer when it comes to paying for senior care, but knowing your options makes it easier to plan and act with confidence. From personal savings to veteran benefits and state programs, families in Indianapolis are combining smart strategies to manage care costs.
At Rittenhouse Village At Northside, our community features private one-bedroom apartment homes, chef-prepared dining, a full calendar of activities, and 24-hour wellness support, all included in one monthly fee. Schedule a tour today to see how our supportive environment and tailored programs can make a difference for your family.
