Many older adults live on strict incomes and the fixed budgets of their pensions or savings. So, when it comes to receiving elder care, how do they afford it? This article will look at some common ways that elder individuals plan for in-home care in retirement.
Medicare and In-Home Care
Generally, Medicare only covers in-home care in certain situations. And for most of these cases, it is only temporary. This can include recovery after a hospital stay, such as after a stroke or major surgery. However, if skilled nursing care is required, Medicare may cover in-home nursing care full-time.
Medicaid Benefits for Elder Care
Medicaid is a support system for lower-income elders. You may be eligible for waiver programs that can cover some or all of your in-home care. Elders who wish to qualify have to meet the necessary medical and financial requirements. An elder law attorney or Medicaid planning specialist can help you apply.
Out-of-Pocket/Family-Supported Care
Some individuals pay out-of-pocket, or with the support of their family unit. This can include pensions, savings, or social security checks. Family members may help contribute to the cost of care for their older family members when possible. For families in this situation, discussing care expectations and the cost of care as needs arise can be important. Over time, your loved one’s care needs may change.
Veteran’s Assistance Programs and In-Home Care
As of 2023, more than 27% of veterans in the US are over the age of 75, according to the Census Bureau. Veterans and their spouses can be eligible for VA benefits when it comes to elder care. This may include partial or full coverage of your in-home care.
Long-Term Care Insurance
Long-Term Care Insurance is a type of insurance that many older adults invest in. You may have this through your pension program from your employer, or buy into it on your own. LTC Insurance policies help cover in-home care, nursing support, and more when you need it. Policies may vary, and can have different authorizations, daily benefit amounts, and maximum payouts allowed.
Whole Life Insurance Policies
Some Life Insurance programs offer “Whole Life” benefits. This allows the policyholder to borrow against the policy or use some of the funds for care in old age. This can help you financially while you are still alive. However, using these funds will lessen the amount of money that your loved ones receive after you pass.
Hybrid Life Insurance Policies
Hybrid Life Insurance policies combine traditional life insurance and LTC coverage. If policy funds for LTC are unused, they are then added to the life insurance payout after your passing. These policies can be generally easier to qualify for at a later age than traditional LTC insurance plans.
Reverse Mortgaging for In-Home Care Costs
A reverse mortgage is a type of loan for older homeowners that can convert some of their home equity into usable funds. Doing so can provide a steady stream of income to the homeowner. Some companies offering reverse mortgages can be predatory. Always review reverse mortgage agreements with your financial planner and an experienced finance lawyer first.
Safe Harbor Healthcare Services does not provide medical, healthcare, or financial advice via articles. This material has been prepared for informational purposes only. It is not intended to provide and should not be relied on for advice.
Safe Harbor Healthcare Services has provided excellent home care on Staten Island since 1967. Our services help older and disabled individuals live safely and independently while giving their families the peace of mind they need. For more information, contact us or call (718)-979-6900.
