What Financial Options Are Available?

We understand that planning for memory care can feel overwhelming, both emotionally and financially. Many families ask: Are there programs to help pay for memory care? The cost of memory care can differ based on the level of care your loved one needs, the type of living accommodation, or the need for additional services such as incontinence care.

Memory care communities like ActivCare are typically private pay. To assist there are meaningful programs and resources that can help ease the financial burden and make high-quality care more accessible. Taking time to explore all available options—including ActivCare’s Value Option companion accommodations—can bring peace of mind and ensure your loved one receives the compassionate care they deserve. Download the guide here:

Paying for Memory Care

PRIVATE FUNDING
Savings and Retirement Funds
The cost of memory care can be covered by retirement plans, like 401(K)s, IRAs, and employer pensions. Families often combine these funds with the resident’s income, savings, and/or the investments to cover the expenses associated with a memory care community.

INSURANCE
Long-Term Care Insurance
Long-term care (LTC) insurance helps cover the costs of care and services needed because of cognitive impairment like dementia. It is designed to pay for custodial care, which includes room and board in a memory care community. However, coverage depends on the specific policy, and individuals must typically be approved before a dementia diagnosis occurs, as most policies require medical underwriting.

Life Insurance
Life insurance is often purchased with loved ones in mind—to help provide them financial security after a policyholder passes away. If you are exploring ways to help pay for dementia care, your life insurance policy may offer some options. Depending on the type of policy, you might be able to access funds while still living or even sell the policy for its value.

This can be done in a few ways: through an accelerated benefit rider that lets you receive part of the benefit early, a life settlement where the policy is sold for cash, or by converting a traditional life insurance policy into a hybrid long-term care plan. Each of these options can help make quality care more affordable and ease financial worries during a difficult time. Check with your insurance provider.

HOME EQUITY
Selling A Home
When moving to a memory care community, the equity in your home often represents one of your largest assets and selling it with the help of a skilled real estate agent can help you secure the highest value—providing vital funds to support quality senior care and a smoother transition.

If you have a durable power of attorney (DPOA) for a loved one, you can handle the sale of their home on their behalf, making the transition to a memory care community easier for everyone involved. This planning can ease financial stress and help ensure a smooth move into the community that’s right for you or your loved one.

Reverse Mortgage
A reverse mortgage is a type of loan for people aged 62 and older that lets you use the equity in your home to help pay for expenses, like memory care. You don’t have to make monthly payments right away—the loan isn’t due until you sell the home, move out, or pass away. For couples, there are protections in place so that as long as one person continues living in the home, they can stay there safely and comfortably.

GOVERNMENT PROGRAMS
Veterans Benefit
The Department of Veterans Affairs (VA) offers a program called Veterans Aid and Attendance, which can help pay for care services, including memory care communities, for those who qualify. The amount of support may vary based on each person’s situation, but it can make a meaningful difference for eligible families. To find out if this program could help you or your loved one, visit the VA website: https://www.va.gov/pension/aid-attendance-housebound/.

Medi-Cal for Memory Care
Although ActivCare does not participate in this program, California has an option for low-income seniors. Medi-Cal is the Medicaid program in California that provides financial help to people with limited income and resources, offering support for a wide range of healthcare services—including memory care for those living with dementia or similar conditions through the Assisted Living Waiver Program. The specifics of Medi-Cal’s coverage and eligibility requirements for memory care can vary, which means each family’s path to assistance is unique. Learn more here: https://www.dhcs.ca.gov/services/ltc/Documents/ALW-Program-Descriptand-Elig-2024.pdf.

Tax Benefit
Memory care residents may be able to deduct qualified medical expenses paid for long-term care services, which can offer relief during an already stressful time. If you or a loved one requires ongoing support—such as help with daily activities or supervision for cognitive impairment—these expenses might be eligible for tax deductions if certified as medically necessary by a healthcare professional.

Turning to a knowledgeable tax advisor can help clarify if you qualify, so you don’t have to navigate these questions alone. Understanding these possible tax benefits can empower families to make informed decisions, potentially easing financial worries and helping you focus on compassionate, high-quality care.

FINANCING OPTIONS
Bridge Loans
It’s common to experience a short waiting period before long-term funds become available for residential care. For families going through this transition, bridge loans for assisted living can offer peace of mind. These short-term loans provide temporary financial support while you wait for more permanent funding, such as long-term senior care benefits, Medicaid coverage, or the sale of a home. They help ensure your loved one can move into a safe, caring environment without unnecessary delay or added stress.

Secured Lines of Credit
A secured line of credit works a bit like a bank account, but instead of putting money in, you borrow from it when needed. This type of credit is backed by assets you already own, such as CDs, stocks, cash, or personal property. It can be a helpful way to cover memory care costs since you can borrow funds without needing to reapply or change the terms each time. If you don’t qualify for a secured line of credit, a reverse mortgage may be another option to explore.

How to Pay for Memory Care

What Financial Options Are Available?

We're here to help.

Get in touch today.

What Financial Options Are Available?

We're here to help.

Get in touch today.

Join Our Mailing List for the Latest Events and Community Updates.