We report a simulation study of a smart living IoT solution for elderly people living in their own houses. Our study was conducted in the context of BoIT project in Sweden that investigates the use of various IoT devices for remote housing and care-giving services. We focus on a carephone device that enables to establish a voice connection via IP with care givers or relatives. We have developed a simulation model to study the IoT solution for elderly care in the Vaxjo municipality in Sweden. The simulation model can be used to address various issues, such as determining the lack or excess of resources or long waiting times, and study the system behavior when the number of alarms is increased. Simulation results indicate that a 15% increase in the arrivals rate would cause unacceptable long waiting times for patients to receive the care.