The average cost of daily in-home care is around $4,000 per month which might be too steep a price for many. However, most seniors prefer to stay in their own homes as they age. So the question is how to finance in-home care when it becomes necessary. This post discusses six ways to ensure that your elderly loved one can remain safely and happily in their own home.
1. Pay Out of Pocket
This is the most straightforward option for those who have sufficient savings or income to pay upfront for in-home care. Various family members may also be able to help finance in-home care.
2. Veterans’ Benefits
United States military veterans may be eligible through their standard medical benefits for the following:
- Health evaluation.
- Adult day health care.
- Respite care.
- Skilled in-home health care.
Long-term care may also be funded with disability pay or a veteran’s pension. Click here for a short questionnaire to help determine eligibility for the Aid and Attendance Allowance.
3. Medicare/Medicaid
Medicare can help pay for the following:
- Medical care for people over the age of 65.
- Individuals with specific needs under age 65.
- Care for those with end-stage renal disease, whatever their age.
Medicare will not typically cover long-term care costs. However, if certain conditions are met, it may pay a percentage of expenses for a short stay in a skilled nursing facility and hospice care.
Medicaid is a federal and state-run program that helps low-income individuals afford medical care. Your state can determine eligibility for the following:
- Long-term care.
- In-home health care.
- Personal care services.
- Long-term stays in senior communities.
4. Reverse Mortgage
The government created reverse mortgages to help seniors (originally widows) stay in their homes until they pass away. Reverse mortgages have the following limitations:
- The homeowner must be 62 or older.
- The home must be owned either outright or have little debt remaining on the original loan.
- The bank holding the original loan must be repaid before payments can be made on the reverse mortgage.
- There are strict rules regarding homeowners’ insurance, mortgage insurance, and home maintenance.
5. Life Insurance
- Life insurance can help finance in-home care in a variety of ways.
- If the insurance policy has a cash value, withdrawals can be made to pay for long-term care.
- The policy could be sold under a life settlement option, which can produce up to three times as much money as the withdrawal strategy.
- Should the policy owner have a terminal illness, the policy is allowed to be sold through a viatical settlement. Proceeds from this type of sale are usually tax-free.
6. Limit the In-Home Schedule
There are many scenarios where 24/7 in-home care is not necessary. If a 10 hour (or less) caregiver shift can accommodate the individual’s needs, home care may be more affordable. Perhaps family members can provide coverage for part of the day or even whole days.
Choose the Right Caregiver
Make sure you match the caregiver skills with the needs of your loved one at given times during the day or night. Caring Healthcare is committed to helping you look after your aging family member and bringing a better balance to your life as a caregiver. Contact us today for a free, no-obligation consultation. We can help you objectively assess the needs of your loved one while also taking your budget into consideration. We’ll help you find the solution that works best for you.
