Without a doubt, having home care for you or your sick or aging loved one is the best way to ensure that they get the care they need while remaining independent. These services, however, come at a cost.
If you aren’t covered by insurance for these services, there are some unique ways you can look to for the funding you need.
If you own your own home and are over 62 years of age, this is a great option to be able to leverage the equity you’ve built up in your home, over the years. You can borrow a lump sum amount, or get monthly amounts, against the equity in your home. If you’re mortgage free you can borrow a percentage of its value, though not the whole value.
The owner retains title and can remain in their home until they need to sell it to move to a full care facility or if they pass on. That said, there are rules, which vary by bank, but which need to be carefully reviewed, including insurance, property taxes and maintenance requirements, so read the fine print carefully!
Cashing in a life policy
If you don’t really need the life insurance policy that you purchased decades ago anymore, you might have the option to sell it back to the original insurance company for 50-75% of the value of the policy. How is that value determined? With a calculation that includes the amount of the policy, the premiums paid and the owner’s age.
If the company won’t cash it in, there are companies, called ‘settlement companies’, that will buy the policy from you, continue to pay the premiums and collect upon your death.
This available option is only valid if there is no one left who needs to be provided for, such as a spouse or adult children who require care themselves.
Check your long term care insurance policy!
If you have such a policy, either privately or through an employer (past or present), you may have access to benefits for home care. The details of the policy will outline whether there is a threshold of need before the benefit is available, or what types of services are eligible. For example, some policies will only pay for care that is being offered within a facility, versus in your home.
Are you a veteran?
If you served at least 90 days of active duty, you may be eligible for aid and attendance benefits from the VA. This is determined by your doctor and makes you eligible for disability payments that would cover a home care worker. The amount you could receive depends on the level of need—it’s a complicated calculation—and you have to be persistent in working with an accredited Veteran Services Organization to get this in place, but it’s certainly an option!
Another option is to pay for the care yourself, or with the help of family members. If you are a group of children / grandchildren who are opting to pay privately, set up an agreement amongst yourselves as to how much each person is contributing and for how long. Circumstances can change and these kinds of financial issues are best dealt with in writing to avoid any hard feelings later on!
At Mother’s Helping Hands Home Care (MH3 Home Care), we accept eligible long term insurance coverage, VA benefits and of course, private pay. It’s our goal to be able to add Medicare and Medicaid options in the near future, to ensure that we can reach out and care for as many people in the area as possible.