Cost of Memory Care: Understanding Pricing and Financial Aid

Recent reports show that 19.2% of Wisconsin's population is over the age of 60 and 9.7% are also over 70!

Older residents may experience unique issues that come with age. Cognitive decline, including Alzheimer's and dementia, is a common issue. Luckily, specialized memory care communities can help these individuals retain a high quality of life.

Here, we'll discuss the cost of memory care and how families can decrease the financial burden of monthly payments. Read on to learn some things to know when planning for this transition.

What to Know About the Cost of Memory Care

In Wisconsin, Genworth reports that memory care averages about $5,500 monthly. The same source also looks into the specific cost of memory care and cites these specialized services as costing between $950 and $1,375 each month.

So, per Genworth's well-documented financial reporting experts, the average cost of memory care is likely between $6,540 and $6,875 per month.

However, the precise fees will vary depending on:

Where in Wisconsin you reside
The specific community you choose
The level of care your loved one needs
The quality of care the community offers
What services and amenities come with the monthly rent

Choose a memory care community that offers a good value for the money you spend. Don't just arbitrarily choose something that has a low price tag. Doing so may end with your loved one getting a low quality of care and a poor quality of life.

What Comes With These Fees?

Many families cringe at the base memory care costs. This makes sense - they do look pretty high at first brush. However, it's important to understand what you get when renting space in a good memory care community.

All memory care residents at Ramsey Woods access great features like:

Help with daily personal care
Well-appointed apartments
Community amenities (including recreation centers and lounges)
Chef-prepared meals
Restaurant-style dining areas
Fitness and wellness programs
Community activities and events

However, part of the reason that many families find memory care expensive is because it's specialized. Caregivers are specially trained and certified in how to help those with:

Mild age-related cognitive decline
Alzheimer's
Dementia
Parkinson's

Regardless of your family member's level of care, those in memory care communities benefit from:

Special cognitive-boosting activities
Sensory experiences for mental stimulation
Reminders about important activities
Purpose-driven social experiences designed to boost cognition
Meal plans designed to improve brain function as well as overall nutrition

Your monthly rent comes with way more than just a standard apartment, making the costs well worth it.

Financial Aid Options for Memory Care Expenses

Many families first turn toward out-of-pocket financing options for memory care.

Sources of personal funding may include:

Long-term savings
Money in checking accounts
Social security income
Funds from pension programs
Cash from liquidating assets (like the house your loved one is leaving)

A financial advisor may be able to:

Find additional sources of funding you haven't considered yet
Give you more specific information about the cost of memory care
Provide advice about how other families boost senior living affordability

Life Insurance Riders

However, Wisconsin families don't need to pay for memory care entirely out of their own pockets. Several insurance plans can help you pay for your loved one's care.

If your loved one has a life insurance policy, check to see if it has a long-term care rider. These riders let the policyholder use some of the death benefit while they're still alive. The rider aims to help pay for memory care.

You can add long-term care riders to a permanent policy that you already have. This is an easy way to get care coverage that normal health insurance plans don't cover.

Specialized Long-Term Care Insurance

Long-term-care (LTC) insurance plans are specifically designed to help families pay for long-term memory care. This includes memory care.

Those who purchase LTC insurance pay a monthly premium that depends on their:

Credit score
Loan history
Individual policy's coverage terms

In exchange, the insurance company pays for a pre-determined amount of your monthly dementia care costs.

There are two types of LTC insurance. The first, traditional LTC insurance, is a standalone insurance policy.

The second, hybrid LTC insurance, offers all the same benefits as normal LTC insurance. However, it's also combined with either permanent life insurance or an annuity contract. This contract gives a return of the premium to families after the policyholder passes away.

Purchasing a policy early can save money in the long term. If you think you'll need LTC insurance in the next couple of years, you can secure a lower premium by investing in advance.

Loans: Financial Assistance for Memory Care

Families can also benefit from long-term care loans to help pay for senior living. Alzheimer's care pricing can get expensive, so banks and lenders have come up with loans that lessen the burden.

These loans function like any other loans would. However, they're specifically made to help families pay for memory care costs.

Since you pay the loans back to the lender at a pre-determined rate, you'll always know what kinds of payments to expect. This makes planning easier so you can choose the perfect memory care community to help your loved one.

How to Plan for Specialized Senior Care

Meeting with a professional financial advisor is a great way to start planning for senior care. They'll help you:

Figure out how much you'll get from liquidating your loved one's assets
Create a comprehensive monthly budget that accounts for senior care
Remain realistic and unbiased when making decisions

Then, look into loans and insurance plans. Choose the ones that look like they'll provide the best value for monthly care.

This ensures that you can make an informed decision and save money.

Learn More About the Best Cudahy Memory Care

Now that you know about the cost of memory care and what financial aid is available, it's time to begin planning for the transition in more detail.

Ramsey Woods is committed to offering high-quality memory care to every resident. Our individually tailored care plans and caregivers' specialized knowledge ensure that those with Alzheimer's and dementia can thrive.

All our memory care professionals are experienced in working with those who have cognitive decline. Contact us to learn more about the services and amenities we offer with various pricing plans.