If you’d like to do away with house chores and maintenance while maintaining your hobbies and interest, independent living is a great choice for you. However, the cost of independent living may discourage you from it. Don’t dismiss the thought yet as there are several ways you can pay for independent living.
Keep reading to find out six ways to pay for independent living without breaking the bank.
Utilize Social Security Benefits
A monthly social security payment is already an option for you to pay for independent living. But there are ways you can maximize your social security benefit and get the most out of it for what you qualify for. If you retired at the age of 65 or later, you may be entitled to Supplemental Security Income(SSI). You can visit your local Social Security Administration office or the website to check if your income meets the requirements.
Sell Your Current Home
If you don’t have the financial capability to pay to live in a senior living community, this is a great way to raise funds. Look for realtors within your area that can stage and sell your house for you. Some retirement communities offer help with moving and selling a home.
Rent Out Your Current House
If you don’t like the idea of selling your home to pay for independent living, renting out your current house is a great option, especially if you want to leave it as a legacy. The market in your area and how long you’ve lived in your home will determine the rent(income) you’ll receive.
Take Out Reverse Mortgages
If for whatever reasons you do not want to sell your house right away, this is an option you can opt for. A reverse mortgage allows you to borrow cash against your home’s equity. This financial option is only available for you if you are 62 years or older. However, it’s important to know that this is only a short-term solution as the loan is due in one year.
Try Selling Your Life Insurance Policy
Your life insurance policy can turn out to be a useful financial asset for you if you sell it. Most insurance policies can easily be cashed out to sort out other necessities.
The best place to turn to is the company that holds your policy as several companies provide buyback options. However, this depends on your health, age, and the policy amount.
If you are unable to sell your life policy for cash directly at your insurance company, try life settlement instead. Life settlement companies will pay you a lump sum for your policy, and the company will be the one to settle your premiums till you pass on and then receive the policy in place of your heirs.
Use Annuity Payments
If you have ever invested in any retirement fund of any sort, it’s time to put your investment to good use. The annuity pays you either a lump sum or a series of payments for the rest of your life. This can come in handy to help foot the cost of moving into a retirement community.
Ask Your Family for Support
You should involve your family in your decision to move into an independent living community. They may be willing to support you financially to help you move comfortably. Instead of assuming they will not be okay with it, ask and you may just get the help you need.
