10 Creative Ways to Pay for in-Home Care
Different ways to pay for in home care

In-home care: while it’s one of the most helpful types of care available, it can also be a financial stressor. More than a few people have had the experience of waking suddenly in the middle of the night, panicked about how they’ll pay for their in-home care and what will happen if they can’t manage it.

For people who are injured, ill, or aging, and can’t manage all of the tasks of daily living on their own anymore, in-home care can be a lifesaver. In addition to taking the burden of caring for an aging loved one off friends and family members, in-home care also serves to enhance the quality of life and provide critical medical assistance in the place where a person is most comfortable – his or her home. 

If you’re starting to think about how you’ll pay for in-home care, or you’re already struggling to make ends meet, here are ten creative ideas to cover the cost. Read on.

First Things First – Is In-Home Care Expensive?

There’s no one-size-fits-all formula for calculating the cost of in-home care. Prices vary widely depending on where you live, what type of care you need, and the skill level of the person you’d like to hire. According to Caring.com, home health aides made an average of $16-$29 hourly in 2011, and home healthcare costs are only rising by an average of 1.15% annually.

Depending on your level of need and your financial circumstances, in-home care may be a simple thing to afford. On the other hand, though, it may be a financial stressor, and you may be looking for ways to make it work more easily for your family.  

10 Creative Ways to Cover the Cost of In-Home Care

Regardless of what your needs may be, these ten simple tips can help you cover the cost of in-home care and get the attention you deserve.

1. Get long-term care insurance

Long-term care insurance is insurance that is designed to cover the cost of things like long-term nursing, admittance to an assisted living facility, ongoing medication, and more. While not all long-term care policies cover in-home care, some do, and it’s an avenue that’s well worth exploring. 

The only negative factor about long-term care is that most policies have a disqualifying age, after which you cannot purchase the insurance. Because of this, you must plan to purchase long-term care insurance while you’re still healthy. This will allow you to take advantage of the policy when you eventually need it to cover in-home care. 

2. Use annuities to your advantage

Annuities are one thing that few people think of to pay for in-home care, but they can be instrumental in helping make the cost more manageable. A hybrid between a personal investment account and an ongoing insurance plan, annuities represent money that a senior has invested and earns interest for. After the money has matured for a given period, the senior can begin making withdrawals.

In addition to helping seniors grow their money, annuities are designed to help cover the costs of living as a senior ages, since they pay a consistent income stream for a set number of years, or until the senior dies. 

Annuities sums aren’t viewed as assets when a senior applies for Medicaid, and the income earned from them is often enough to cover the cost of in-home care and more.

3. Apply for Medicaid and use its benefits to pay for in-home care

Medicaid is a program designed to help low-income seniors cover their health needs. While Medicaid coverage laws vary depending on the state you live in, all Medicaid plans are designed to cover in-home care for at least a short period. 

In some cases, Medicaid may even cover long-term in-home care, if the person utilizing it would otherwise be in a nursing home. 

4. Consider applying for a reverse mortgage

While few people know this, reverse mortgages were developed to help seniors stay at home for as long as possible. Here’s how a reverse mortgage works: once a senior has paid a significant amount of equity into his or her home, he or she can start taking some of that equity out, in the form of lump-sum or ongoing payments. 

While reverse mortgages can be ideal for some seniors, they do have parameters that can rule some people out. Here’s what they require:

  • The senior must be 62 or older
  • The senior must own his or her home, either free-and-clear or with little money left on the loan
  • The bank that issues the reverse mortgage appraises the home and determines payment values based on a loved one’s age and payout requirements

5. Look into using veteran’s benefits

If you were an armed forces members, you might be able to use military benefits to cover the cost of your in-home care. The only downside of this approach is that the U.S. Department of Veterans Affairs is notoriously difficult to navigate, and you may find yourself working very hard to get the benefits you’re owed. While you’ll have to contact a representative to understand your individual eligibility, here are the policyholder parameters for veteran’s benefits:

  • You must have served at least 90 days of active duty
  • One of those days must have been during wartime
  • You must have been honorably discharged

If you meet these requirements, you may be eligible to receive disability payments that can help you cover the cost of your in-home care.

6. Look over your life insurance policy

If you have life insurance, you may find that it can be used to cover your in-home care. If you don’t have dependents that will rely on the life insurance, consider dipping into your policy and using “accelerated” benefits to cover the cost of your in-home care. 

Accelerated benefits are features of certain life insurance policies that allow the policy holder to take advantage of the insurance benefits within their policy before death. Ideal for paying for in-home care, these benefits are typically reserved only for those who need ongoing in-home care or have been disabled by chronic conditions. 

If you have a life insurance policy and no dependents relying on it, consider this option. As a rule, insurance policies will allow holders to pull out between 25%-100% of their death benefit as an accelerated benefit.

7. See if Medicare is right for you

While it’s tough to get Medicare coverage to provide for your in-home care, it is possible, and it’s worth evaluating. Medicare is issued when a person leaves a hospital or long-term-care facility. In some cases, those benefits can extend to covering the cost of in-home care as a form of rehabilitative therapy. 

Keep in mind, though, that these benefits can be limited and may not be right for everyone.

8. Pool resources within the family to cover the cost of in-home care

If none of the above options appeal to you, you can consider pooling resources within your family. Things like collective sibling agreements and personal savings can go a long way toward covering the cost of in-home care and are some of the most common options people take when considering how to offset the expense.  

9. Develop an in-home care savings fund

Many people have savings funds for medical emergencies, vacations, and more, so why not establish one to cover the cost of in-home care. While this takes some planning and dedication, it can be a straightforward and stress-free way to cover the cost of in-home care down the line.

10. Sell off assets

For some seniors who don’t have dependents or people relying on inheriting assets, selling assets can be a functional way to get the extra funds required to cover the cost of in-home care. Of course, this approach depends entirely on the senior’s unique circumstances, and won’t be right for everyone. 

The Case for In-Home Care

For seniors who can no longer care for themselves alone, in-home care can be a wonderful way to enhance quality of life and ensure safety and happiness for years to come. It can be expensive, though, and these ten tips can help offset the cost and make it easier for you and your family members to cover the expenses associated with in-home care. 

Related Health Tips

12 Secrets to Living a Long, Healthy Life

Most people visualize themselves aging gracefully and living a long, healthy life filled with good friends, family, and plenty of activity. While this is something that many people dream of, it’s far from being a fantasy. The fact is, many seniors do it. So what’s...

A Proactive Approach to Loneliness and Social Isolation In Seniors

Although the prevalence of loneliness and isolation in seniors has been an enduring concern, the outbreak of the current COVID-19 pandemic has significantly increased awareness and sensitivity to the issue. As a result of pandemic impacts, other populations are...

Medication Management: 10 Helpful Tips and Tricks for Managing Your Medication

As people age, it’s not uncommon for doctors to prescribe a complex series of medications to manage existing health conditions and prevent new ones from arising. While these medications may be helpful, the task of remembering which medications to take every day can be...

How to Have a Successful First Day with a New In-Home Caregiver

Hiring a caregiver to help with your loved one can be an immense relief in the long run; but at first, you may find it slightly stressful. Introducing someone new into your life is a stretching experience, and an adjustment phase is normal and expected. With a little...

Why Some Seniors Lose Their Hearing and How You Can Prevent it

As seniors get older, it’s not uncommon for them to lose their hearing.A grandmother who used to share whispered secrets with a grandchild may now struggle to hear shouts from across the house. A grandfather who used to be an avid talker may now feel isolated from...

10 Ways Caregivers Can Stay Motivated in Providing Great Care

Staying motivated as a caregiver can be tough. In addition to the fact that you work long hours, being a caregiver is a difficult job.Fortunately, most caregivers love their jobs and want to find ways to excel at them. That’s where these motivational tips come in....

Knowing When it’s Time to Ask for Help in Home Care

Whether a person is elderly or disabled, it can be difficult to know when to ask for help. Societally, we are taught that asking for help is a sign of weakness and a cause for embarrassment. Unfortunately, nothing could be further than the truth. If one of your...

8 Essential Things To Do Before Hiring an In-Home Caregiver

You’ve decided it’s time to hire an in-home caregiver for your aging loved one — now what? How do you choose the right caregiver? Caring for an aging loved-one can be an overwhelming job – emotionally, physically, and financially.To help you, we’ve put together a list...

Telling The Difference Between Normal Forgetfulness and Dementia in Seniors

As we age, it’s not uncommon for us to experience so-called “senior moments” – moments of temporary forgetfulness or absent-mindedness. In some cases, this is a normal side effect of aging and, in others, it’s a symptom of the beginnings of dementia. Many people,...

Assisted Living for Your Loved One: When is the Right Time?

Assisted living is a housing option for older adults who want or need help with everyday activities, such as cooking meals, housekeeping, and keeping doctor’s appointments. In addition, this type of community can provide your loved one with maintenance-free living and...

0 Comments

0 Comments

Submit a Comment

Phone

+1 803-574-3069

Location

717 Encino Pl NE.
Albuquerque, NM 87102

Store Hours

M-F: 8am – 11:30pm
S-S: 9am – 9:30pm

We are happy to announce that we now accept credit card payments for all your orders. Please contact us via live chat after you complete the checkout process to finalize your transaction securely.

X
error: Alert: Content is protected !!