Helping a parent transition from independent living to professionally assisted care can take a toll, not only emotionally but also financially.
Research shows median costs rising across a range of senior living options. Adult children can face tremendous pressure to help pay those costs, especially when their parents’ condition deteriorates quickly. What do you do when Mom or Dad needs help but you’re waiting for their house to sell or their government benefits to be approved?
Fortunately, you may not have to face these short-term difficulties on your own. Adult children have several options for financing senior care, including the transition stage, that can provide some relief.
What does senior care cost?
Costs can vary widely depending on required level of care, location, and other factors. In general, a 2017 study paints a statistical picture that ranges from $18,000 per year for adult day care to $97,000 per year for a private room in a nursing home.
Unless your parent qualifies for public assistance or your family has considerable financial resources, paying even a modest amount for senior care could prove challenging. Those challenges make it essential for adult children and their families to explore their options, especially when they need transition funding in a timely manner.
Short-term options for senior care
When it comes to senior care, most funding options focus on the long term rather than the short term. But, depending on your situation, you do have a few short-term options to consider. They include:
You might consider a personal loan to help finance a parent’s transition to supervised care. Don’t think of personal loans as limited to cars or real estate — they can provide cash for a wide range of one-time expenses.
In fact, a specialized type of loan has become more common in recent years as families look for creative solutions to financing elder care. The term “bridge loan” usually applies to selling one house and buying another, but an elder care bridge loan is designed specifically for senior care transitions.
The typical scenario for an elder care bridge loan involves a senior moving into an assisted living facility. The borrower would take out the loan to help with moving costs, entrance fees, and other short-term expenses.
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