How to Pay for Senior Living: A Guide to Help You Plan

So, you’ve decided to explore senior living communities. This an important step as well as an exciting step! Here in the Twin Cities, there are so many wonderful options to choose from—each with its own unique amenities and features. But as you look around and dream about your future home, one big question probably comes to mind:

“How am I going to pay for this?”

Don’t worry—you’re not alone; we’re here to help. Yes, senior living can feel expensive. In the Twin Cities, the average cost of assisted living (which includes rent, food, housekeeping, and personal care) is around $4,800 to $5,200 per month, while the average Social Security benefit is about $1,833 per month. But don’t let those numbers overwhelm you. There are many ways to cover the cost of senior living. When you take a closer look, you may realize that assisted living is more affordable than you think.

Why Senior Living is Worth It

Consider your current monthly expenses. How much does it cost to maintain your home? Here are some common average monthly costs in the Twin Cities:

• Mortgage or rent: $1,500-$2,591+
• Property taxes: $250
• Utilities (electricity, water, heat, etc.): $300+
• Groceries: $500
• Home maintenance (repairs, lawn care, etc.): $150+
• Insurance: $112-$236+

That’s already around $2,812-$4027 per month—and this doesn’t include the cost of in-home care, transportation, or recreation. Assisted living often combines all these expenses into one monthly payment, plus added benefits like 24/7 care, delicious meals, housekeeping, and social activities.

When you compare the costs, assisted living can be a smart financial decision—and it makes life easier and more enjoyable, too!

Eight Ways to Pay for Senior Living

If you’re wondering how to afford senior living, here are some of the most common ways people cover the cost:

1. Long-Term Care Insurance

Do you have a long-term care insurance policy? If so, this could be one of your best resources. Most policies cover assisted living, so now’s the time to review what your plan offers. Check with your insurance agent to see what’s covered and save yourself a big headache—and potentially a lot of money.

2. Veterans Aid & Attendance Benefits

If you or your spouse served in the military during wartime, you might qualify for Veterans Aid and Attendance benefits. These benefits can help cover a significant portion of assisted living costs. Visit the VA website to learn more about eligibility and application requirements.

3. Personal Savings and Private Pay

What does private pay mean? It’s simply paying for senior living out of your own resources, like savings, income, or investments. This might include contributions from family members or liquidating assets like stocks, bonds, IRAs, or CDs. While it’s a significant expense, planning ahead with a financial advisor can make this option more manageable.

4. Pension Income

If you’re receiving a pension from a previous employer or membership organization, that monthly income can be applied toward your assisted living expenses.

5. Life Insurance Policies

Your life insurance policy can help cover senior living costs. Depending on the type of policy you have, you might be able to use cash value, take out loans, or access accelerated death benefits. Talk to your insurance agent for details.

6. Annuities

An annuity allows you to convert a lump sum of money into steady payments over time. This option can provide a reliable income stream to cover your living expenses.

7. Your Home

Your home can be one of your greatest financial assets. You might sell it and use the proceeds to fund senior living, or if your spouse still lives there, consider a reverse mortgage. This allows you to access cash from your home’s equity while continuing to live there.

8. Elderly Waiver and GRH (Group Residential Housing)

If you qualify for Medicaid, you may be eligible for Minnesota’s Elderly Waiver (EW) program, which helps cover the cost of home and community-based services like assisted living. Similarly, GRH (Group Residential Housing) is a state program that can assist with housing costs for individuals with limited income. Both programs have specific eligibility requirements. You can learn more by calling Minnesota’s Senior LinkAge Line at 1-800-333-2433.

Does Health Insurance Cover Senior Living?

Generally, health insurance, including Medicare, does not cover the cost of assisted living. However, it may help cover certain medical services provided in an assisted living setting, such as physical therapy or skilled nursing care. To better understand what’s covered, review your policy or contact your insurance provider for details.

Where Can You Find More Resources?

There’s a wealth of information and support available to help you navigate senior living costs:

• Senior LinkAge Line: A free resource in Minnesota offering expert advice on aging services.
• Veterans Services Offices: For help applying for VA benefits.
• Financial Advisors: Experts in estate planning and long-term care solutions.
• Assisted Living Communities: Many communities have specialists who can walk you through financing options.
• Cost of Living Comparison Sheet: Look at what you are spending now and compare it to the cost of senior housing.
  
  

Why Assisted Living is an Investment in Your Future

Moving to an Assisted Living community isn’t just about finding a new place to live—it’s about investing in a lifestyle that prioritizes your health, happiness, and independence. With assisted living, you’ll have access to:

• 24/7 professional care
• Nutritious meals prepared for you
• Fun activities and social opportunities
• A safe, comfortable environment
• Freedom from household chores and maintenance

Plus, with so many funding options available, you can make this move work for your budget.

Let Us Help You Plan

At Ebenezer Senior Living, we understand that everyone’s finances and needs are different. That’s why we’re here to help guide you through the process. Talk to a financial advisor, estate planner, or an expert in senior living funding to explore all your options.

We want to help you find a home where you can thrive—and make the most of this exciting new chapter in your life.

Senior living is more affordable than you think. Let’s find a solution that works for you!

Amira Choice Champlin is operated by Ebenezer Senior Living. For more than 100 years, Ebenezer has led the way in developing programs designed to support older adults in living their best lives. Over the years, these programs, known as Cornerstones, have become part of each community Ebenezer serves.