5 Smart Ways to Pay for In-Home Senior Care

If there’s one certainty about in-home senior care costs, it’s that they’re on the rise.

A 2016 study by long-term care and life insurance company Genworth showed that the price of  has increased steadily over the last 13 years. The average cost of in-home care assistance and home health aides in the U.S. today is over $3,800 a month, while adult day care costs around $1,500 a month on average.

Footing the bill for aging loved ones who need help with daily living is clearly a challenge. However, many families are using the following ways to cover in-home care costs.

1. Private Insurance

There are a couple of options when it comes to using life insurance to pay for senior care: a long-term care insurance policy and converting a life insurance policy into cash.

*Long-term care insurance

Flexibility is the key when it comes to long-term care insurance. Some policies don’t cover in-home care while others are based on the seriousness of the loved one’s condition and the type of home health care agency. But more flexible policies designate a certain dollar amount that can be used for care every day and allow family members to choose an in-home care provider.

*Converting a policy into cash

Many life insurance policies can be cashed in for an amount that’s based on the amount of the policy, the monthly premiums and the age and health of the policyholder. There are also settlement companies that may buy the policy.

2. Collective Sibling Agreements

Personal and family assets are often used to pay for in-home care. Families can develop plans by which siblings who can’t help with care in person contribute funds to those who are responsible for care. These types of agreements should always be put in writing to avoid disputes or tension in the future.

3. Public Benefit Programs

If the person needing senior care has a very low income and limited assets, programs such as Veterans Administration (VA) benefits, Medicaid, Programs of All-inclusive Care for the Elderly (PACE) and others can help pay for care. For example, veterans who have served more than 90 days active duty, with at least one day during a wartime period and who were honorably discharged may be eligible for a Veteran’s Pension.

4. Reverse Mortgages

Reverse mortgages are designed to help seniors stay in their homes until their final days. Seniors can use the value of the equity in their home to get cash to help cover senior care costs. The cash can be distributed all at once or in monthly payments. There are some stipulations—the recipient must be 62 or older, and must own his or her home outright and have little debt left on the loan.

5. Medicare

While it’s not easy to get Medicare coverage for in-home care (and it’s limited), it is easier than it used to be. Due to the settlement of a lawsuit in 2013, Medicare coverage for senior care can no longer be limited by whether or not the patient’s condition is improving.

While in-home senior care costs are rising and may continue to rise, there are a number of ways to pay that ease the pressure on families and ensure their aging loved ones get the care they need.

45 comments

Jerome S
Jerome S2 months ago

thanks for sharing.

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Samantha S.
Samantha S.3 months ago

Among these five payment options, getting long-term care insurance is the wisest decision you’ll ever make. One reason is that it provides comprehensive coverage. Second, it can protect your assets. Third, it can protect your loved ones from high cost of care. Lastly, it can give you peace of mind.

Based on the latest cost of care from ALTCP.org, the median cost of an assisted living facility is around $43,539 annually while the median cost of a private room in a nursing home care is around $92,378 annually. The best way to cover these expenses is by getting long-term care insurance.

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Philippa P
Philippa P4 months ago

Thanks.

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Chen Boon Fook
Chen Boon Fook4 months ago

thanks

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Angela K
Angela K4 months ago

noted

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JD She
JD She4 months ago

Noted

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Chun Lai T
Chun Lai T4 months ago

thanks for the information

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natasha s
natasha s4 months ago

thanks

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Glennis W
Glennis W4 months ago

Interesting advise . Thank you for caring and sharing

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Glennis W
Glennis W4 months ago

Great information . Thank you for caring and sharing

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