The integration of IoT and Ambient Assisted Living (AAL) enables discreet real-time health monitoring in home environments, offering significant potential for personalized and preventative care. However, challenges persist in balancing privacy, cost, usability, and system reliability. This paper provides an overview of recent advancements in sensor and IoT technologies for assisted living, with a focus on elderly individuals living independently. It categorizes sensor types and technologies that enhance healthcare delivery and explores an interdisciplinary framework encompassing sensing, communication, and decision-making systems. Through this analysis, this paper highlights current applications, identifies emerging challenges, and pinpoints critical areas for future research. This paper aims to inform ongoing discourse and advocate for interdisciplinary approaches in system design to address existing trade-offs and optimize performance.