The average cost of senior living ranges from $3,000 to $9,000 per month. For most families, that requires careful planning. The good news: there are multiple ways to fund senior living, and most families combine two or more options. Here are seven financial strategies worth exploring.

1. Medicaid

Medicaid is the single largest payer of long-term care in America, covering nursing home costs for over 60% of nursing home residents. More than 40 states now offer Medicaid coverage for assisted living through HCBS waiver programs.

Eligibility: Most states set the asset limit at $2,000 for individuals. Income limits generally fall between $2,000 and $3,000 per month. The look-back period examines transactions from the previous 60 months.

Key tip: Consult with an elder law attorney before making financial moves. Medicaid planning is complex and state-specific.

2. Veterans Affairs (VA) Benefits

The Aid and Attendance Pension provides substantial monthly payments. 2026 maximum rates: Veteran $2,431/month, surviving spouse $1,568/month, veteran with dependent spouse $2,885/month. The condition does NOT need to be service-related.

3. Long-Term Care Insurance

Typical policies pay $150 to $350/day for 2 to 5 years once the insured meets the benefit trigger. Contact the insurer early to understand the claims process and elimination period.

4. Home Equity

Selling the home can fund 3 to 8 years of assisted living. Reverse mortgages allow homeowners 62+ to borrow against equity without monthly payments. Renting the home generates ongoing income of $1,500 to $2,500/month.

5. Life Insurance Conversion

Accelerated death benefits allow receiving a portion of the death benefit if diagnosed with a terminal or chronic illness. Life settlements involve selling the policy to a third-party buyer for a lump sum.

6. Personal Savings and Retirement Accounts

Social Security provides a baseline (average $1,900/month in 2026). Senior living expenses qualifying as medical care may be tax-deductible above 7.5% of AGI.

7. Bridge Loans and Specialized Financing

Senior care bridge loans provide short-term funds (6-12 months) while waiting for home sales or benefit approvals. Some communities also offer internal payment plans.

Building Your Strategy

Most families combine sources: Social Security covers 30-40%, personal savings 20-30%, and benefits programs cover the rest. Start by understanding costs in your area with CarePriced, then consult a financial advisor.