If you have a senior loved one who’s been diagnosed with dementia or Alzheimer’s disease, you know how critical it is to find the right memory care program for them to get the support you need. You also have likely realized that memory care has its costs, and they can be intimidating at first. Have you and your family come up with a plan for how to pay for memory care? Our expert team here at the Canopy at Azalea Grove is walking you through all of your funding options to help you navigate this stage of life with confidence.
How Much Does Memory Care Cost?
How much does memory care cost on a monthly basis? There's no black-and-white answer – costs vary depending on your location, the community you choose for your loved one, and the level of care that they need. To give you a clearer idea of what kinds of costs you may be facing, the median cost of memory care in the United Stated in 2025 is $6,935 a month. Obviously, you and your family will need some sort of plan for how to pay for memory care for your loved one.
How to Pay for a Memory Care Community
Luckily, there are lots of options that can be used to pay for a memory care community. Most memory care residents use a combination of private funds and public resources, and our expert advisors are breaking them all down for you so you can decide which are best for you and your senior loved one.
Option #1: Personal Savings and Income
Personal savings and income can absolutely be used to cover the cost of a memory care community. Personal savings, pensions, social security benefits, stocks, bonds, and income from investments can all help to offset the cost of this type of senior care. It’s also not unheard of to have family members pool their resources to help fund memory care programs for their loved ones. Be sure to explore all of the options when planning how you’ll pay for senior care and have an open discussion with family members.
Option #2: Veterans Benefits
If your loved one or their spouse is a veteran, they may be able to access Veterans Benefits to help pay for a memory care community. There are multiple Department of Veterans Affairs programs available, including:
- VA Pension and VA Survivor’s Pension: This type of pension may provide monthly payments to your senior loved one to fund memory care if they’re eligible. The funds can be used as needed, including for a private-pay community.
- Aid and Attendance: To qualify for this additional type of veterans benefit, veterans or their spouses must need help with ADLs, or activities of daily living. This assistance can be added on top of a VA pension. Again, seniors have to be eligible to receive this type of benefit.
Option #3: Medicaid
Many families also explore Medicaid as funding sources for a memory care community. This type of benefit may cover memory care programs, but you’ll need to look at what’s covered in your state as the benefits vary widely across the country. While Medicaid typically doesn’t cover room and board in a memory care community, this benefit can be used to pay for some memory care services in communities that accept it. Seniors have to meet certain financial and cognitive requirements from the state to qualify.
Option #4: Long-term Care Insurance
Long-term care insurance is a commonly used resource when it comes to funding memory care needs for seniors. This special type of insurance varies from policy to policy, so you’ll need to reach out to your insurer to see exactly what benefits and coverage your loved one’s policy offers. Here’s a crucial point to keep in mind: long-term care insurance can only be purchased before the need for long-term care arises. The best time to purchase this type of policy is in the mid-50s when policyholders are still in generally good health.
Option #5: Life Insurance Conversion
If your senior loved one has a life insurance policy, you may be able to explore a life insurance conversion to fund a memory care community. A life insurance conversion is when you convert an existing life insurance policy into either long-term care insurance or a life settlement, which is a pre-funded financial account. Life settlements disburse a monthly payout to help cover long-term care expenses. Further, you might be able to “surrender” the life insurance policy to the insurance company in order to cash it out. Your best bet in this circumstance is to find a financial planner or attorney who can help you decide which option is best and help you navigate the process.
Option #6: Home Equity
Your loved one’s home can be a great source of funding for a memory care community. Home equity options include:
- A home equity loan, where you can use your loved one’s home as a source of collateral for a loan
- A reverse mortgage, which is a special type of home equity loan for seniors over the age of 62
- A sale, in which case you can sell your loved one’s home to pay for their memory care community
- A rental, in which case you can rent your loved one’s home out to new tenants to help fund memory care
Explore Our Memory Care Community Today
Now that you understand how to pay for a memory care community, it’s time to see how The Canopy at Azalea Grove can support your senior loved one in this next phase of life. Schedule a time to talk to an advisor today and if you still have questions about funding memory care, download our free guide, "The Ultimate Guide to Funding Senior Living: Navigating Costs with Confidence at Azalea Grove". We’re here to help you every step of the way.