Paying For Home Care: Creative Funding Sources
A common misconception for most families faced with
the idea of considering home care is that Medicare covers Custodial
Care, which is defined as assisting a person with their activities of
daily living (ADLs). In most cases this is exactly the kind of care
that most people first needing home care require, and Medicare does
not cover it or long-term care of any kind. Live-in care falls under
that category, and the cost of Live-in care is thus an out-of-pocket
There are, however, a number of other options that
can assist with payment for home care.
Aid and Attendant Pension: Qualified
Veterans can get up to $20,000 per year to help pay for the cost of
home care or assisted living in a facility.
Reverse Mortgage: The mortgage company
pays the homeowner a monthly amount which is then subtracted from the
equity in the home.
Life Settlement: Unneeded or unaffordable
life insurance policy can be sold for a percentage of the face value.
Long-Term Care (LTC) Insurance: Recommended
for those over 55, LTC insurance pays for home care preventing the depletion
of a lifetime of wealth accumulation by insuring against long-term illness.
The first three options are little known and worth
consideration when sorting out ways to pay for custodial care for a
At Expert Home Care, we have access to all these products
and services through relationships with reputable professionals, and
will gladly share details and resources.