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Home Care Doesn't Always Have to Be Out-of-Pocket: Exploring Your Options

So, you’ve started looking into home care for a loved one, and the first thing you see is an hourly rate. Your next thought is probably, “How are we going to afford this every month?”

That’s a completely normal and valid worry. Many families assume that paying out-of-pocket is the only way, and that can feel overwhelming. The good news is, it’s not your only option. There are several paths to help manage the cost of care, depending on your loved one’s situation.

Let’s walk through some of the most common alternatives.


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1. Long-Term Care Insurance

This is the one specifically designed for this moment. If your parent had the foresight to purchase a long-term care insurance policy, now is the time to use it.

  • How it works: It’s like auto or home insurance, but for care needs. You’ll need to file a claim, and the policy will outline how much it will pay per day or month, and for how long.

  • What to do: Find the policy documents and call the insurance company. They will walk you through the process of activating the benefits.

2. Veterans Benefits (The VA Aid & Attendance Pension)

This is a crucial one that many military families don’t know about. If your loved one is a veteran or the surviving spouse of a veteran, they may be eligible for a pension to help pay for in-home care.

  • How it works: The Aid & Attendance pension is a monthly benefit on top of the standard VA pension. It’s specifically for veterans who need help with daily activities like bathing, dressing, or eating.

  • What to do: Contact your local VA office or a Veteran Service Officer (VSO). They can help you navigate the application, which can be complex but is well worth the effort.

3. Medicaid (Not to be confused with Medicare)

This is a common point of confusion. Medicare typically does NOT pay for long-term, non-medical in-home care. Medicaid, however, often does.

  • How it works: Medicaid is a state and federal program for individuals with limited income and assets. Many states, including Georgia, have Medicaid waiver programs (like the SOURCE program in Georgia) that can cover the cost of in-home care for those who qualify.

  • What to do: Eligibility is strict and based on income and assets. The best first step is to contact your local Division of Family and Children Services (DFCS) office or a certified Medicaid planner to see if your loved one qualifies.

4. Life Insurance Policy Conversion

This is a less-known option. Some life insurance policies can be used before the policyholder passes away to help pay for care.

  • How it works: There are generally two ways:

    1. Accelerated Death Benefit: Some policies allow you to receive a portion of the death benefit early if the insured is chronically ill.

    2. Life Settlement: You can sell the policy to a third party for a lump sum of cash (less than the death benefit, but more than the cash surrender value), which can then be used to pay for care.

  • What to do: Contact the life insurance company directly to ask about an accelerated death benefit. For a life settlement, you would work with a licensed life settlement provider.

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5. Reverse Mortgage (For Homeowners)

For a senior who owns their home, a reverse mortgage allows them to convert part of their home's equity into cash.

  • How it works: The homeowner can receive funds as a lump sum, line of credit, or monthly payments. The loan typically doesn’t need to be repaid until the last surviving borrower sells the home, moves out, or passes away.

  • What to do: This is a major financial decision with pros and cons. It’s essential to speak with a HUD-approved reverse mortgage counselor to understand the implications fully.

A Quick, Important Note: Every family’s situation is unique. The right path depends on your loved one’s health, financial status, and history. It often makes sense to talk to a financial advisor or an Elder Law attorney who can help you look at the whole picture.

We know that figuring out how to pay for care can be just as stressful as finding the care itself. We hope this list gives you a starting point and shows that there might be more options available than you thought.

If you have questions about home care or need help figuring out where to start, please don’t hesitate to reach out.

CareUnityy LLC

(866) 753-1359

 
 
 

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