Installing a walk-in tub can significantly improve safety and quality of life for older adults, especially those who want to age in place. There are quite a few benefits of installing walk-in tubs, with the most prominent one being reducing the risk of falls by offering a low-step entry, built-in seating, and handrails. This makes them a practical addition for those with mobility issues. However, they come with a price tag that can range from several thousand dollars to even more, depending on the features and installation requirements.
Fortunately, there are multiple ways to pay for a walk-in tub, whether you tap into your home’s equity, take advantage of government programs, or use other financial resources. This guide outlines various strategies to help you finance this important home improvement.
Home equity-based options to pay for a walk-in tub
One of the most common ways to pay for a walk-in tub is to leverage your home’s equity. Several financial products allow you to borrow against the value of your home.
Home equity line of credit (HELOC)
A home equity line of credit (HELOC) allows you to borrow against the equity in your home. It works much like a credit card: You are approved for a specific credit limit, and you can draw from it as needed, paying interest only on the amount borrowed. The flexible nature of a HELOC makes it ideal for home improvement projects like installing a walk-in tub, since you can access funds as the project moves along.
However, it’s important to consider the variable interest rates associated with HELOCs, which can fluctuate. If interest rates rise, your payments might increase, making it crucial to have a solid repayment plan.
Home equity loan
Unlike a HELOC, a home equity loan provides a lump sum of money up front, which you then repay over a set period, typically at a fixed interest rate. This can be beneficial if you know exactly how much the walk-in tub and its installation will cost.
A home equity loan offers the predictability of fixed monthly payments, but it requires good credit and the ability to manage long-term debt. You are essentially taking on a second mortgage, so be sure you’re comfortable with the repayment terms before committing.
Reverse mortgage
For homeowners aged 62 and older, a reverse mortgage can be a viable option to fund a walk-in tub. With a reverse mortgage, you borrow against the equity in your home, but you don’t have to repay the loan until you sell the house, move out permanently, or pass away. The major benefit is that there are no monthly payments, which can ease financial pressure for retirees.
However, reverse mortgages can be complex, with fees and interest that accumulate over time, reducing the equity left in your home. It’s important to fully understand the implications and consult with a financial advisor to determine if a reverse mortgage is the right choice for your situation.
Government programs and grants
Several government programs offer financial assistance for home modifications, including the installation of a walk-in tub. These programs can be particularly beneficial for Veterans, older adults, and low-income households.
VA Home Improvements and Structural Alterations (HISA) grant
If you are a Veteran, the Department of Veterans Affairs (VA) offers the Home Improvements and Structural Alterations (HISA) grant. This grant is designed to help Veterans with disabilities make necessary modifications to their homes, such as installing a walk-in tub. The grant can provide up to $6,800 for Veterans with service-connected conditions and up to $2,000 for those with non-service-connected conditions.
To qualify, you’ll need to apply through the VA, providing documentation of your disability and the necessary modifications. This grant is a great option for Veterans but is unavailable to non-Veterans.
Medicaid home- and community-based services (HCBS) waivers
Medicaid offers home- and community-based services (HCBS) waivers in many states, which might cover the cost of home modifications, including walk-in tubs. These waivers are designed to help low-income older adults and individuals with disabilities stay in their homes instead of moving to assisted living or nursing homes.
Eligibility varies by state, but if you qualify, Medicaid might cover a significant portion of the cost of a walk-in tub. For example, Colorado has a program that helps elderly, blind, or disabled people pay for home modifications and accessibility adaptations. It’s important to research your state’s specific Medicaid programs to see if HCBS waivers are available and if you meet the eligibility criteria.
Retirement savings and investments
If you’ve been diligent about saving for retirement, you may want to explore whether your retirement savings or other investments can help cover the cost of a walk-in tub.
Using a 401(k) or IRA
You can tap into retirement accounts like a 401(k) or an IRA for home improvements, including walk-in tubs. However, withdrawing from these accounts comes with some considerations to be aware of. If you’re under the age of 59 1/2, you could face early withdrawal penalties and income taxes. On the other hand, if you’re over 59 1/2, you can avoid the penalty, though you’ll still need to pay taxes on the withdrawal.
Before deciding to dip into retirement funds, consider the long-term impact on your financial security and consult with a financial planner to ensure it’s the best course of action.
Selling or liquidating investments
If you have investments in stocks, bonds, or mutual funds, you could consider selling some of these assets to finance your walk-in tub. While this can provide immediate cash, be mindful of the potential tax implications, particularly capital gains taxes if your investments have appreciated in value. Selling investments can be a quick way to raise funds, but make sure it aligns with your overall financial plan.
Personal loans and financing options for paying for a walk-in tub
For those who prefer not to tap into home equity or retirement savings, a personal loan or specialized financing might be a better fit.
Personal loans
A personal loan from a bank, credit union, or online lender can provide a lump sum of cash to pay for a walk-in tub. These loans are typically unsecured, meaning you don’t need to use your home as collateral. However, because they are unsecured, interest rates might be higher than those for home equity loans or HELOCs. The repayment terms for personal loans can vary, so it’s important to shop around for the best rates and terms before committing.
Medical or specialized financing
Some lenders, suppliers, and contractors offer specialized financing options for home modifications, often at lower interest rates or with deferred payment options. These programs may be available through medical equipment suppliers or nonprofit organizations that assist older adults and individuals with disabilities. Researching these options can uncover favorable financing terms that make the installation of a walk-in tub more affordable.
Insurance and long-term care benefits
Health insurance and long-term care insurance can sometimes provide coverage for home modifications, though the details vary depending on the policy.
Health insurance
Unfortunately, most health insurance plans, including Medicare, do not typically cover home modifications like walk-in tub installation because they are considered luxury items rather than medical necessities. However, some Medicare Advantage plans may offer benefits for home modifications, so check with your insurance provider to see if any assistance is available.
Long-term care insurance
If you have long-term care insurance, it’s worth reviewing your policy to see if it covers home modifications like installing a walk-in tub. Some policies include provisions for home safety improvements, particularly if they are deemed necessary to help you stay at home longer rather than moving to a senior care community. Contact your insurance provider to understand what is covered and how to file a claim for these types of expenses.
Local nonprofits and charitable organizations
Many local nonprofits focus on helping older adults and individuals with disabilities live safely in their homes. These organizations might offer financial assistance or even volunteer labor to help with home modifications. Contacting local aging services, disability organizations, or faith-based groups can lead to valuable resources and support.
You have options for paying for a walk-in tub
There are numerous ways to pay for a walk-in tub, ranging from home equity loans to government grants, retirement savings, and personal loans. The best approach depends on your financial situation, eligibility for government programs, and willingness to take on debt or use existing assets. Before making a decision, it’s wise to consult with a financial advisor to explore the options in detail and ensure the choice you make aligns with your long-term financial goals.
