In-home care services are largely provided through private payment however there are other options. For example, life settlement is the sale of one's life insurance policy to a third party, for a one-time cash payout. To apply for the life settlement option, you will need to find and work with a reputable life settlement company. In addition, you must be 72 or older with a qualifying policy or, be 65 or older and suffer from minor impairments.

The cash from a life settlement can be used to cover the cost of home care, assisted living, adult daycare, respite care, hospice care, nursing homes, and Alzheimer’s care facilities.

For more information, or to schedule a free in-home consultation, contact a Client Care Liaison today!

 

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A reverse mortgage is a loan for seniors age 62 and older. HECM reverse mortgage loans are insured by the Federal Housing Administration (FHA)1 and allow homeowners to convert their home equity into cash with no monthly mortgage payments. Taking a reverse mortgage out on a home allows the homeowner to receive liquid cash from the value of their home, without having to move out of the home. As long as the homeowner occupies the home and pays their taxes, this money will be paid out to them as fixed monthly payments, a lump sum, a line of credit, or a combination of these options.  The money can be used for whatever the borrower wants to use it for, but many people choose to use the money to pay for continuing senior care services, such as in-home care.

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For families who might not have access to Veterans Benefits or Long Term Care Insurance, there are other options that can help pay for long term private duty care:

1. Many families choose to spread the cost of care for a loved one across several members of the family to help share the financial responsibility.
2. Another viable option to consider is converting a non-liquid asset, such as a home, through a reverse mortgage program.
3. A home equity line of credit, or some other form of real estate conversion, could also be considered as an alternative.
4. Life insurance policies offer another avenue to convert non-liquid assets through a life settlement or death benefit loan program.
5. In some cases, using a combination of Social Security benefits, private pensions, savings, home equity, and life insurance may be the best alternative to provide in-home care.

Ultimately, planning a consultation with an expert is your best option. Your local Client Care Liaison is well-informed on financial alternatives, conditioned to the sensitivity of health care costs, and available to help 24/7. You can contact your Client Care Liaison directly, or submit a question on our Expert Advice page.

Background Information

Since Medicare is a government-funded health insurance program for people over 65, most families assume that it will cover their long term care expenses. However, this is not the case. Aside from some rehabilitative care, Medicare does not cover long term care expenses, whether at home, in an assisted living facility, or in a nursing home. Many families prefer to move forward with long term care regardless of this, and many choose in-home care for various reasons.

Long term in-home care is usually referred to as private duty care, and is often an out-of-pocket expense, meaning the payment is the responsibility of the individual or family. And although Medicare doesn't help families cover their long term in-home care expenses, there are other options that can help, such as Long Term Care Insurance and Veterans Benefits, among other things.

We suggest reviewing the FAQs below for more information, and contacting your local Client Care Liaison to discuss your personal circumstances. Our Client Care Liaisons are knowledgeable of all payment options, and can provide recommendations that carefully consider your family’s needs and resources.