Assisted living costs add up fast. According to the 2024 Genworth Cost of Care Survey, the national median runs $5,900 per month, or $70,800 per year. In Prescott, Arizona, you can expect to pay about $6,450 per month.
Most families use a combination of funding sources. Here is what you need to know about each option.
Key Takeaways
- Prescott costs: Assisted living in Prescott averages $6,450 per month, higher than Arizona’s statewide average of $5,500.
- Average stay: Most residents live in assisted living for 2 to 3 years, meaning total costs typically range from $154,800 to $232,200.
- VA benefits: Veterans and surviving spouses can receive up to $2,795 per month (married veteran) or $1,515 per month (surviving spouse) through the Aid and Attendance pension.
- Long-term care insurance: Policies cover an average of 2.6 years in assisted living.
- Home equity: Selling a home is the most direct way to fund care. Bridge loans can cover the gap while your home sells.
- Plan early: Most people turning 65 will need some form of long-term care. The earlier you plan, the more options you have. If you are considering retiring in Prescott, start thinking about care costs now.
What Does Assisted Living Cost in Prescott?
Prescott’s median assisted living rate is approximately $6,450 per month. This is higher than both the Arizona average ($5,500) and the national median ($5,900).
For comparison, here is how Prescott stacks up against other Arizona cities:
| City | Monthly Cost |
| Prescott | $6,450 |
| Phoenix | $5,500 |
| Lake Havasu City | $4,925 |
| Tucson | $4,575 |
What Is Included in the Monthly Fee?
Most assisted living communities charge a base monthly fee that covers housing, meals, housekeeping, activities, and basic personal care assistance. However, the specifics vary by community.
Services that often cost extra include:
- Higher levels of personal care (help with bathing, dressing, toileting)
- Medication management
- Memory care for residents with Alzheimer’s or dementia
- Transportation beyond scheduled outings
- Laundry service
- Pet fees
When touring communities like Alta Vista Senior Living in Prescott, ask for a detailed breakdown of what the base fee covers and what triggers additional charges. Knowing what to look for in assisted living will help you accurately compare costs.
7 Ways on How to Pay for Assisted Living
Understanding your payment options is essential. Many families are surprised to learn how many resources are available. Here are the most common ways to fund senior living in Prescott.
1. Personal Savings and Retirement Income
This is the most common payment method. Most families combine multiple income sources, including:
- Social Security benefits
- Pension payments
- 401(k) or IRA withdrawals
- Savings accounts
- Investment income
Families typically cover about half of long-term care costs out of pocket, with the rest coming from insurance, benefits, or other sources.
2. Selling or Renting a Home
For many seniors, home equity is their largest asset. Selling the family home can provide a significant lump sum to fund care.
If you need to move before the home sells, a bridge loan can cover the gap. These short-term loans are paid off when the sale closes. Several lenders specialize in bridge loans for seniors moving into assisted living.
3. Long-Term Care Insurance
If you purchased a long-term care insurance policy years ago, now is the time to use it. Policies typically cover an average of 2.6 years in assisted living nationwide.
Key points about long-term care insurance:
- Most policies have a waiting period (often 90 days) before benefits kick in.
- Benefits are typically paid as a daily or monthly maximum.
- Coverage varies by policy, so review your documents carefully.
One important note: Only a small percentage of Americans over 50 have long-term care insurance. If you do not already have a policy, obtaining one later in life may be difficult or expensive. Nearly half of applicants over age 70 are declined coverage due to health conditions.
If your loved one needs memory care rather than standard assisted living, coverage and costs may differ. Review your policy carefully.
4. VA Aid and Attendance Benefits
This is one of the most underused benefits available. The VA’s Aid and Attendance pension provides tax-free monthly payments to wartime veterans and surviving spouses who need help with daily activities.
Current benefit amounts (effective December 2024):
| Status | Monthly Benefit | Annual Benefit |
| Single Veteran | $2,358 | $28,300 |
| Married Veteran | $2,795 | $33,548 |
| Surviving Spouse | $1,515 | $18,187 |
To qualify, veterans must meet these requirements:
- At least 90 days of active duty with at least one day during a wartime period (WWII, Korea, Vietnam, Gulf War)
- Discharge other than dishonorable
- Need help with activities of daily living (bathing, dressing, eating, toileting)
- Net worth below $163,699
The application process can take several months, so start early. Many families work with a VA-accredited claims agent to help with the paperwork.
5. Reverse Mortgages
A reverse mortgage lets homeowners age 62 and older borrow against their home equity without making monthly payments. The loan is repaid when the borrower sells the home, moves out for more than 12 months, or passes away.
Reverse mortgages work best when:
- One spouse is staying in the home while the other moves to assisted living (some communities specialize in keeping couples together even when care needs differ)
- The senior wants to age in place with in-home care.
- The family needs flexible access to funds over time.
There is one major limitation: If the borrower moves to assisted living or a nursing home for more than 12 consecutive months, the loan becomes due. A non-borrowing spouse may be able to stay in the home under certain conditions, but the rules are complicated. Consult a reverse mortgage specialist before proceeding.
6. Life Insurance Conversions
If you have a life insurance policy you no longer need, you have two options:
Cash surrender value: Cancel the policy and receive its accumulated cash value. This is typically less than the death benefit but provides immediate funds.
Life settlement: Sell the policy to a third party for more than the cash surrender value but less than the death benefit. The buyer takes over the premium payments and collects the death benefit when you pass away.
Both options have tax implications. Talk to a financial advisor before making this decision.
7. Home Equity Line of Credit (HELOC)
A HELOC lets you borrow against your home equity as needed, similar to a credit card. You only pay interest on what you borrow.
Unlike a reverse mortgage, a HELOC requires monthly payments. This makes it a better fit for families with regular income to cover payments, but who need access to a larger pool of funds.
Questions to Ask Every Community About Pricing
Before signing a contract, get clear answers to these questions:
- What is included in the base monthly rate?
- How often do you reassess care levels, and what triggers a rate increase?
- What is your history of annual rate increases?
- Do you offer financial assistance or sliding-scale options?
- What happens if a resident runs out of funds?
- Are there move-in fees or community fees? Are they refundable?
- Is there a minimum stay requirement?
How to Build a Payment Plan
Start by calculating your total monthly income from all sources. Then estimate the cost of care based on your current needs. Remember that care needs often increase over time, so costs will likely rise.
If you have not yet talked to your aging parents about senior living, now is a good time to have that conversation. Understanding their financial situation is the first step in building a realistic plan.
Here is a simple framework:
- List all income sources: Social Security, pensions, investment income, and rental income.
- Calculate available assets: Savings, home equity, life insurance cash value.
- Estimate total care costs: Monthly rate plus potential add-ons.
- Identify the gap: If monthly income does not cover monthly costs, determine how long your assets will last.
- Explore additional funding sources: VA benefits, long-term care insurance, and family contributions.
Most financial advisors recommend having a plan that covers at least 3 to 5 years of care. For more guidance on planning ahead, read about different ways to think about your future retirement.
Start Planning Now
The earlier you plan for assisted living costs, the more options you have. Start by discovering your ideal retirement community, talking to a financial advisor who specializes in elder care, and having honest conversations with family about what resources are available.
If you are exploring assisted living options in Prescott, Alta Vista Senior Living offers personalized tours and can answer questions about pricing and payment options. Visit avprc.com to learn more or schedule a visit.
Frequently Asked Questions
1. Is assisted living cheaper than home care?
It depends on how much care you need. A home health aide costs a median of $77,792 per year nationally (based on 44 hours per week). That is more than the $70,800 median for assisted living.
If you need less than 40 hours of home care per week, staying home may cost less. But if you need around-the-clock care, assisted living is often more affordable.
2. What happens if I run out of money in assisted living?
Most communities will work with you if you communicate early. Some options include:
- Transitioning to a smaller room or shared accommodations
- Applying for state assistance programs (where available)
- Working with the community’s social services team to find solutions
Communities that offer comprehensive care options can sometimes help residents transition between care levels without moving to a new facility.
The key is to talk to the community before funds run out, not after.
3. Can I buy long-term care insurance for my parents now?
You can, but it may not be practical. Premiums increase significantly with age, and many applicants over 70 are declined due to health conditions. If your parents are in good health, it may still be worth exploring, but get quotes before making assumptions.
