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Reviewed by:The cost of senior care is rising, and it’s one of the hardest expenses to plan for. Today, the median monthly cost of assisted living is over $5,000, while nursing homes can exceed $9,700. If you or a loved one needs care but has little or no money, you’re not alone; there are ways to get help.
From government programs to insurance benefits and financial planning tools like life settlements, there are more options than you might think.
Quick Answer
- If you have no money for assisted living, you may qualify for programs like Medicaid, VA benefits, Social Security, or non-profit aid, or you may even receive a lump sum by selling your life insurance policy through a life settlement. Most people combine two or more of these options to cover costs. You can also consider lower-cost alternatives like home health aides or adult day care.
Use a Life Settlement to Pay for Assisted Living
If you have a life insurance policy you no longer need, you may be able to sell it through a life settlement and receive a lump-sum cash payout. This amount is typically much higher than the policy’s surrender value, and you can use the money however you need, including for assisted living or nursing home care. (Learn how cash surrender value works).
 Why consider it?
- You stop paying premiums.
- You get immediate funds to cover care.
- The process is quick and confidential.
Use our life settlement calculator to get a free estimate in minutes.
Other Ways to Use a Life-Insurance Policy for Care Costs
Option | How It Works | Pros | Cons |
Life settlement (sell the policy) | Sell policy to a third party for 15–60 % of its face value. | Highest payout; no loan or premiums. | Policy no longer pays beneficiaries. |
Living benefits rider | Access part of the death benefit while alive (often for chronic or terminal illness). | Keeps some benefits for heirs; fast. | Payout is limited; it reduces the death benefit. |
Cash-value surrender | Permanently cancel a whole or universal life policy and take the cash value. | Quick lump sum. | Usually, the least money of all options; the policy ends. |
Policy loan | Borrow against the cash value at low interest. | Keep the policy in force. | Loan + interest must be repaid, or it reduces the death benefit. |
1035 exchange | Swap policy’s cash value into a long-term-care insurance contract, tax-free. | Converts dormant policy into LTC coverage. | No lump-sum cash; must qualify for new LTC policy. |
Need help deciding? Our advisors can walk you through each option and estimate potential payouts or savings.
Government and Insurance-Based Options
Medicaid
Medicaid can help cover assisted living, but coverage varies by state. Most states offer waivers that pay for services like:
- Personal care
- Medication management
- Housekeeping
- Transportation
Important: Medicaid typically does not cover room and board in assisted living. However, Medicaid is the primary payer for full coverage of nursing home care in most states.
Does Medicare Pay for Assisted Living?
No, Medicare doesn’t pay for assisted living, but it does cover:
- Short-term nursing home care after hospitalization
- Rehabilitation (speech, occupational, or physical therapy)
It covers up to 100 days after a qualifying hospital stay.
VA Benefits
Veterans and surviving spouses may qualify for monthly financial support to help pay for assisted living through:
- Aid and Attendance (A&A): Up to $2,727/month, based on marital status and care needs
- VA pensions or disability compensation
- Nursing home coverage through VA-owned or contracted facilities
To qualify, veterans typically need:
- At least 90 days of active duty, with 1 day during wartime
- Limited income/assets
- A documented need for daily care assistance
Visit VA.gov or contact a VA benefits advisor for help applying.
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Long-Term Care Insurance
If you have a long-term care (LTC) policy, it can help cover assisted living or nursing home costs. These policies typically require:
- Proof of need (you must need help with 2+ Activities of Daily Living)
- A waiting period (commonly 30–90 days) before payments begin
- Claims submitted by you or directly from the care facility
Not all policies cover assisted living specifically, so check the fine print or contact your insurer for details.
More Ways to Pay When You Have No Money
Social Security and SSI
Social Security provides a steady income stream, and SSI offers extra help to low-income seniors. In 2024, the average benefit was about $1,862/month, and SSI can add up to $967/month for individuals. While this likely won’t cover full assisted living costs, it can help reduce the out-of-pocket burden when paired with other benefits.
Bridge Loans
Bridge loans offer short-term financing while waiting for longer-term solutions (like selling a house or liquidating assets). Make sure you have a clear repayment plan, such as a pending home sale or insurance payout, to avoid long-term debt.
Nonprofit and Community-Based Resources
Several nonprofit organizations offer financial assistance or care-related support:
- Salvation Army: Emergency financial aid
- AARP Foundation: Resources for low-income seniors
- National Council on Aging: Benefits checkup tools
- Meals on Wheels: Reduces food costs, freeing up funds for care
- Alzheimer’s Foundation of America: Grants for memory care
You can also check with your local Area Agency on Aging (AAA) for community-level help.
Cheaper Alternatives to Senior Living
If assisted living or nursing homes are out of reach, these lower-cost options may meet your needs:
Care Option | Description | National Median Cost |
Homemaker Services | Help with cooking, cleaning, and errands | $30/hour |
Home Health Aide | Personal and basic medical care | $33/hour |
Adult Day Care | Supervised daytime care outside the home | $95/day |
Disclaimer: Cost estimates are based on the Genworth 2023 Cost of Care Survey. Social Security benefit data is sourced from the Social Security Administration (SSA), February 2024. Figures may vary by location and individual circumstances. This article is for informational purposes only and does not constitute financial, legal, or medical advice.
What If I Run Out of Money While in Care?
- Nursing home: Apply for a hardship waiver via your state’s Medicaid office.
- Assisted living: Contact your local AAA or ask the facility about reduced-cost arrangements.
Get the Care You Deserve, Even Without Savings
You’re not alone, and you don’t need money up front to get the care you deserve. Whether it’s public benefits, private insurance, or unlocking the value of your life insurance through a life settlement, there are ways forward.
Start with a free estimate using our life settlement calculator or call us to speak with a specialist who can walk you through your options.
