Let’s face it, most of us have limited resources.  That means limited amounts of money, even with long term care insurance policies.  Medicare doesn’t typically cover the cost of home care. There are, however,  many approaches that you can take when planning care for a loved one that can help keep long term care costs affordable.  You should consult with qualified professionals before taking any of these steps.  Also, please understand, that depending on which avenues of funding you decide to pursue, you may need to consult with a variety of professional advisors.

Paying for Long Term Care

Creative Care – You can stretch out care dollars by getting care only when it is needed, such as in the morning for getting out of bed and in the evening for going to bed. You may want to have a loved one live with you so that you aren’t alone at night.  Sometimes, these care arrangements can work well for a long period. You should re-assessed your plan periodically to ensure that you are receiving the care and services you need.

Reverse Mortgage – These typically give you access the equity in your home and allow you to draw an income as long as you live in the home.

Long Term Care Insurance – Usually you must purchase this in advance, and there are various limitations that you should understand before you purchase a policy.

VA Benefits – If your loved one served active duty military during certain periods, were honorably discharged, and met the time minimums, they may qualify for benefits.

Medicaid or State Benefits – Once you have exhausted your own resources, it may be desirable to use home care provided by an agency that can bill for medicaid.  You may need to be able to prove that you meet the income threshold and the requirements for daily living assistance.

Selling Assets – Sometimes there are assets such as rental properties, and those can be sold to pay for care.  The pros and cons of doing this should be weighed carefully and discussed with a certified financial planner.

Cost of Care

People are often surprised by the cost of long term care and feel they can’t afford it. When compared to assisted living and nursing home facilities, home care can actually be a more affordable option. As an added bonus, home care comes to the client: no need to move to a facility until it becomes absolutely necessary. Most seniors would prefer to stay at home as long as possible, making home care a win-win solution. Even if a client is already in a facility, home caregivers can come to them where they are and provide care that can delay the need for a more expensive level of facility care.

Data from Genworth 2014 Cost of Care Survey North Carolina
https://www.genworth.com/dam/Americas/US/PDFs/Consumer/corporate/North-Carolina-040114.pdf

Got questions? Give us a call, we’d be happy to help you understand your home care options.

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