New long-term care financing alternatives emerge in response to senior housing financing crisis.

As part of my service to seniors through my SRES designation, I would like to pass some information to those who may need it.

As reported in the New York Times, US News and World Report, and elsewhere, many seniors facing the prospect of long term care are unable to pay for their care today owing to the depressed real estate market. These aren’t the classically poor seniors who’ve traditionally turned to Medicaid under these circumstances. Rather, these are elderly whose primary homes are their largest store of wealth, and they’ve planned on selling that primary home when the time was right and exchange the proceeds from that sale to secure a place in a senior living center or retirement home.

Vacancy rates at retirement homes and assisted living facilities are rising as this funding gridlock prolongs, causing these businesses to become creative and risk-taking in order to keep occupancy rates high. Some retirement homes, for example, are foregoing their customary entry deposits until the incoming residents can sell their homes.

Certain lesser-known funding strategies are gaining in prominence and popularity as seniors seek new solutions to pay for their elder care. Among these strategies are bridge loan products that lend up to $50,000 per year to a “consortium” of up to six family members who need to finance a loved one’s care temporarily until the future sale of an asset such as the senior’s home. Or life settlement products, which purchase in-force life insurance policies from seniors for a lump sum that’s greater than the cash surrender value of the policy. Whereas the bridge loan products may generally be used solely for community-based care, the life settlement products can be used for about any purpose.

For more information, visit Senior Care Funding – an online tool that quickly and easily helps families determine potential eligibility for funding alternatives for senior housing or home health. They focus on 2 funding options, life settlements and bridge loans, which allow seniors the financial means to secure the care they need without sacrificing the equity of their homes.

Life Settlements help pay for any long-term care option, such as senior housing or home health care.

Bridge Loans pay for senior housing with funds sent directly to one of the over 2,000 participating communities on the family’s behalf.