When it's time to consider assisted living for a loved one, you may be concerned about how to pay for this new type of housing and care. Fortunately, there are many options you can choose from to help cover the costs. Here is a look at just some of these options to help decide which one is right for your family.

Life Insurance

If your loved one has a whole life insurance policy, one option to help cover the costs of assisted living is to cash this policy in. The insurance company will likely offer a percentage of the face value of the policy, so how much your loved one can get will depend on the current value. In some cases, you can also sell the policy to a third party in a process that is known as a life settlement. This option can sometimes yield more money than cashing out a policy. If your loved one does choose to sell or cash out a policy, consider pre-paying his or her funeral with a portion of the money. With the insurance policy gone, you and your family might otherwise have to cover the cost of the funeral on your own.

Reverse Mortgage

Your loved one's home can offer a way to pay for assisted living care through a reverse mortgage. This option is appealing to some seniors because they get to keep their current house while still accessing the money needed to pay for assisted living or nursing home care. A reverse mortgage means your loved one can go into assisted living while his or her spouse can still remain in the family home. With a reverse mortgage, the loan only becomes due when the homeowner and spouse are no longer living in the home or when it is sold. Upon death, the loan payments typically become the responsibility of the heirs if they want to keep the home.

Medicaid Spend-Down

If you have too many assets to qualify for Medicaid assistance, you may want to consider a Medicaid spend-down. This option consists of making approved purchases to reduce the amount of assets you have. Travel to and from medical appointments, medical care, prescriptions, and other approved expenses can all be used to reduce your assets. Your loved one can also pre-pay funeral as part of your spend-down. Contacting an attorney to help you navigate the rules and regulations for a Medicaid spend-down is a good option if you aren't sure how to handle the process on your own.

Discuss these options with your loved one, and work together to find the right solution that covers the cost of assisted care. Visit potential homes, like Haven Homes, for more help.