If you or your loved one is an active, healthy senior looking for more socialization and a maintenance-free lifestyle, you’re on the right track by considering independent living. You’ll find benefits like activities, dining, and regular housekeeping, but this living option doesn’t include help with personal care or medical services. That’s why paying for independent living more closely mirrors paying for an apartment or condo, rather than other types of senior communities. So, when you’re evaluating how to pay for independent living, expect to rely mostly on your own funds instead of outside resources.
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The first step in affording independent living is fully anticipating its costs. The median cost of independent living is $3,100 per month, according to A Place for Mom’s 2024 report on the cost of long-term care.[01] However, this range can vary widely based on a community’s location, size, and amenities. As with other senior care types, independent living costs peak in major metropolitan areas.
Seniors can better understand whether a community fits their budget by asking some key questions:
Additionally, seniors can consider what expenses independent living can remove from their budget. While their rent costs may rise, all-inclusive independent living may reduce or fully eliminate spending on food, transportation, housekeeping services, and more.
When it comes to paying for senior independent living, most people have to turn to their personal savings. This can include pensions, retirement accounts, and investments. If personal income or savings are spent on medical care services within an independent senior living facility, a senior may qualify for tax cuts related to these medical expenses.
If seniors have a source of income, such as Social Security payments or paychecks from a part-time job, they can put this money toward their rent in an independent living community as well.
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Many seniors have invested in insurance policies to be proactive about the costs of long-term care and senior living. But does insurance cover independent living costs?
Long-term care insurance — also called senior care insurance — differs based on a senior’s specific policy and what company provides it. In most cases, however, these policies help with health and personal care costs, making them more applicable to assisted living, memory care, and skilled nursing facilities than independent living.
Generally, seniors can use their long-term care benefits when they require help with two or more activities of daily living (ADLs) — such as bathing, toileting, or getting dressed — or when a doctor has determined they’re experiencing cognitive impairment.
Since independent living doesn’t incorporate help with ADLs or dementia care, long-term care insurance typically doesn’t cover costs associated with independent living.
Seniors often buy life insurance to continue providing for their families financially after passing away. But in cases where older adults need to free up money for senior living, life insurance policies can serve as a reliable and substantial cash reserve.
Policyholders can explore many different options, such as the following:
If you use life insurance to pay for independent living, it’s vital to consult your insurance company to understand specific regulations and details.
Older adults moving into an independent living community often sell their home to fund the transition. Seniors and their families should reach out to a real estate agent to discuss selling a home to pay for senior living. Notably, senior real estate specialists — agents who have experience working with older adults, in particular — can prove to be a trustworthy and knowledgeable partner in this process. Seniors and caregivers can find a Senior Real Estate Specialist (SRES) in their area through the National Association of Realtors’ database.
Though it’s a less traditional option, retaining one’s house and using this family home as an investment — as in renting it out to another individual or family — has become an increasingly popular strategy. Oftentimes, this can be more lucrative from a long-term perspective. It can also be surprisingly stress-free: Investment and property management companies work with older adults to take on tasks like finding tenants, determining rent prices, and managing the property.
A house stands out as a majority of seniors’ most significant asset, but selling other items helps generate value, as well. For example, a couple moving into independent living may consider sharing a vehicle and selling their second car.
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Many public benefit programs only help seniors cover medical care costs, which independent living doesn’t encompass. The following government programs don’t typically pay for independent living, but they might cover medical care costs within a senior living facility:
In some cases, seniors in independent living may coordinate care through a third-party home health agency. Medicaid, Medicare, and VA benefits typically cover these services when they’re prescribed by a doctor.
Though rare, some public benefits may help seniors manage independent living costs. In many situations, the following public benefits do help pay for independent living:
Seniors typically choose independent living facilities when they’re active and healthy and desire a more social, maintenance-free lifestyle. This empowers older adults to form new friendships, indulge in amenities, and enjoy their retirement with less stress.
Yet as they continue to age and require more care, seniors may find that independent living no longer meets their needs. As they assess how to pay for senior living, seniors can be proactive by also planning for what comes next, including payment options for assisted living and payment help for memory care.
A Place for Mom. (2024). Cost of Long-Term Care and Senior Living.
USAGov. (2023, January 18). Military pay and pensions.
U.S. Department of Veterans Affairs. (2022, December 20). VA home loans.
U.S. Department of Housing and Urban Development. Section 202 supportive housing for the elderly program.
Social Security Administration. (2022). Understanding supplement security income SSI eligibility requirements — 2023 edition.
The information contained on this page is for informational purposes only and is not intended to constitute medical, legal or financial advice or create a professional relationship between A Place for Mom and the reader. Always seek the advice of your health care provider, attorney or financial advisor with respect to any particular matter, and do not act or refrain from acting on the basis of anything you have read on this site. Links to third-party websites are only for the convenience of the reader; A Place for Mom does not endorse the contents of the third-party sites.
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