Choosing a Retirement Home

So you’ve decided it is time to retire or maybe you have been retired for several years. Thoughts of moving into a retirement home have started to cross your mind. So what is the best option? Where should you look? What are some things to be aware of?

As with many other things in life, getting into retirement homes boils down to a question of money. Financing a retirement home is now a little easier if you are a homeowner; an increasing number of mortgage companies offer ways to convert equity you’ve built up in your home into money for a retirement community home. Before you shop for a retirement home, talk to a mortgage specialist and find out if you can apply your equity to paying for a senior retirement home, and how much you would have to work with.

Many people buy insurance to help financing a retirement home well in the future. Some insurance companies offer private insurance policies specifically for long-term nursing home care. If you choose to go this route, make sure to shop carefully. These policies can vary greatly in coverage and cost, and it is important to understand precisely what kind of policy you are purchasing, and whether it will support the kind of retirement homes you will need.

Many people make the mistake of believing that Medicare covers the cost of most long-term care services such as retirement homes. However, Medicare only covers short-term, acute care during a hospital stay. You will need to work out other forms of financing if you haven’t saved enough by the time you need to find a retirement home.

Financing retirement homes with an insurance policy can help meet the expenses you'll encounter, but you must be careful. If you are considering an insurance policy, make sure that it pays benefits immediately upon entry into a nursing care facility or senior retirement home. Many insurance policies, which are purchased prior to the need for nursing care, require a waiting period after entry into a nursing care facility before payments are made. It is highly unlikely that nursing care insurance can be purchased after a person has entered a nursing care facility.