Recently, BenefitsPro reported that senior living arrangements costs keep rising, with a national average cost of $2,520 per month for independent living, $3,823 for assisted living and $4,849 for memory care:

To many seniors, it seems like a lot of money to pay every month – but is it really? One value-added service you can offer is a true cost assessment of what a client (or client’s parent) will actually pay for senior living arrangements. Here are a few ideas for creating the assessment:

• Start with a detailed monthly budget for the senior’s living arrangement and lifestyle. Make sure to include costs of food, vehicle, property taxes, homeowner’s insurance, and property cleaning/maintenance.
• When a senior moves into independent living, many of these separate costs items can disappear or be rolled into the monthly fee. A meal plan usually is included. Many facilities also include room cleaning, laundry, electricity, basic cable TV and bus transportation.
• In a competitive market, a growing number of facilities offer an active schedule of social and educational events for seniors, and some have well-equipped health clubs. You might want to assign some value to these benefits.
• Whether or not the senior would maintain a personal auto, after moving into independent living, can be a big cost factor. Giving up a car often can save $300-400 per month.
• A basic food plan, including in the facility’s monthly rent, can be worth another $300-400 per month. Many seniors eat well on an economical plan that provides one full meal per day, supplemented by in-room breakfast, snacks and light meal preparation.
• You also might want to factor into your analysis the cost of family members’ time to care for seniors still living at home. The best independent living facilities provide personal monitoring, which can free family members from some chores.

There are two bottom lines to the true cost assessment. One is an estimate of the difference in the senior’s monthly living costs and the costs you project after a move into a facility. The second is an estimate of the rate at which a move into independent living will spend down the person’s financial assets – i.e., how long money can be expected to hold out. The more you know about costs and services of facilities in your market, the more valuable your assessment will be. Be sure to study the authoritative source of local market cost data, Genworth’s 2015 Cost of Care Survey.