How to Pay for In-Home Senior Care: 6 Realistic Options

When a loved one begins to struggle with daily tasks and can no longer care for themselves independently, it usually falls on their family members to find solutions. Many people assume that in-home senior care is unaffordable and that their only options are moving their loved one to a nursing home or assisted living facility or taking on the caregiving responsibilities themselves.

But in reality, in-home care can be quite cost-effective, and it’s often more affordable than live-in facilities. There are also several resources that you may be able to take advantage of that will lower or even fully cover the costs of quality at-home care.

Here, we’ll explore some options that can help your loved one maintain their independence and stay in the comfort of their own home for as long as possible—without adding hefty financial burdens.

1. Long-term care insurance (LTC)

One of the most straightforward ways to pay for in-home care is through long-term care insurance, which is why it’s an important option to consider in your financial planning for retirement. If your loved one has an LTC policy, it may cover some or all of the costs associated with hiring a licensed care agency.

Keep in mind that your loved one may not remember having this type of policy, especially if they suffer from Alzheimer’s or dementia. So check their financial documents or bank statements for recurring insurance payments. You can also contact their insurance provider to confirm coverage, but you may need to show power of attorney before they will share any details with you.

Some life insurance companies also offer an optional long-term care rider, which is an add-on to a base plan, so be sure to check any life insurance policies they have, as well (more on this next).

If they do have an LTC policy, review the benefits to see if in-home care is covered, how much the policy will pay, and how to file a claim. If you’re unsure about the details, we can help you navigate the process and verify your loved one’s coverage.

2. Life insurance options

Did you know that life insurance policies can sometimes be used while the policyholder is still living? Some policies offer “living benefits” or “accelerated benefits,” which allow you to cash out the policy early—at a reduced payout—to cover in-home care expenses.

If your loved one’s policy includes these features, you can use it to help pay for care. In some cases, insurance companies only allow early payout if the policyholder is terminally ill, so it’s important to check the specific terms.

Additionally, there is the option of a “life settlement,” where you sell the policy to a third-party company for a portion of its total value. While this won’t get you the full value of the policy, it can provide funds for immediate care needs.

3. Medicaid waivers

Medicaid can assist with in-home care, but typically only on a short-term basis. However, there are Medicaid-funded Home and Community-Based Services (HCBS) waivers available that can help cover extended care.

These waivers are intended for seniors who would otherwise need to be placed in a nursing home or assisted living facility. But keep in mind that not everyone on Medicaid qualifies — eligibility is based on financial need and individual circumstances. So contact your local Medicaid office to determine if your loved one qualifies and learn how to apply.

4. Veteran’s benefits

If your loved one is a veteran, they may qualify for additional benefits that can help offset the cost of in-home care. These benefits are often in addition to any retirement or disability payments they may already receive.

Although the application process can be complex and time-consuming, it’s worth pursuing if your loved one qualifies. And the good news is that most veterans who qualify for VA medical benefits are also eligible for long-term care coverage, as long as they have a legitimate medical need for it.

5. Reverse mortgage

If your loved one owns their home outright, a reverse mortgage might be an option to consider. This financial arrangement allows the homeowner to receive either a lump sum or monthly payments based on the home’s value. The loan is repaid when the home is sold after the homeowner passes away.

While this option won’t be suitable for everyone, it can provide significant funds for those who qualify. But it’s important to weigh the long-term implications and consult a financial advisor before pursuing this route, as it can leave the person’s family with debt after their passing, rather than an inheritance. It may also put the senior’s eligibility for government benefits at risk.

6. Family cost-sharing

If none of the above options are viable, another solution is for family members to share the cost of in-home care. By pooling resources, you can significantly reduce the financial burden on any one person, making care more affordable for everyone involved.

You can also develop a plan for family members to share part of the caregiving responsibilities so that your loved one only needs part-time in-home care.

Affordable care is within reach

Providing your loved one with the in-home care they need doesn’t have to break the bank. There are a variety of options available to help cover or offset the costs.

If you’re feeling overwhelmed or uncertain about where to begin, Right Hand Senior Care is here to help. Our team is dedicated to providing affordable, quality care and can assist you in determining which benefits and programs your loved one qualifies for.

Contact us today to get started or find out more about how we can support you and your family with professional, compassionate care.