The search for a no-deposit Diur Mugan (sheltered or assisted living) is like a search for a unicorn in the Israeli senior living landscape. While incredibly rare, understanding the financial models at play reveals why they are so elusive and where you might begin to look.
The standard Israeli Diur Mugan model is built upon a large, one-time deposit called a pikadon. This sum, which can range from 1 million to over 3 million NIS, serves two primary functions: it acts as the resident’s equity contribution to the facility’s construction and capital costs, and it funds the long-term infrastructure of care. This deposit typically erodes by a small percentage (3-4%) each year for about 12 years, with the remaining balance returned to the resident or their heirs upon leaving. This model ensures the facility’s long-term financial stability.
A rental-only model, without this large deposit, is fundamentally at odds with this financial structure. To compensate for the lack of a pikadon, a facility would have to charge a significantly higher monthly fee to cover its capital and operational costs. These monthly fees would likely be 2 to 3 times higher than the fees at a standard deposit-based facility, making them unaffordable for many.
So, do they exist? A pure rental model in a Dati Leumi rural village is virtually nonexistent. However, some facilities may offer alternative “tracks,” such as a lower deposit coupled with a higher monthly fee. Additionally, some newer players in the senior living market are experimenting with different financial models, though these are more common in urban centers than in rural settings. The most practical approach is to contact the major Dati Leumi-oriented senior living networks, like Beth Protea or others, and inquire directly about any flexible financial tracks they might offer. The answer is likely not a simple “yes,” but a more complex negotiation about balancing deposits and monthly fees.
Too Long; Didn’t Read
- The standard Israeli Diur Mugan model relies on a large, partially-refundable deposit (pikadon).
- A pure rental-only model is extremely rare because it is financially challenging for the facility.
- A rental option would require monthly fees that are 2 to 3 times higher than the standard model.
- Some facilities may offer hybrid tracks with a lower deposit and higher monthly fee.
- Your best bet is to contact senior living networks directly to ask about alternative financial arrangements.
