Whether it’s for you or for an aging loved one, at some point in your life you may have to face the tough question of, “How can I pay for a professional caregiver?” Depending on various factors of your situation, any number of answers could help you afford a professional caregiver.
The most important thing you can do is educate yourself on the options that exist, so that you can make an informed decision to reduce high costs and frustration people often experience when arranging for care of an aging loved one. Here’s a look at seven different options that might help you, in whole or in part, pay for a professional caregiver.
Personal Funds or Retirement Savings
It is never too early to begin saving for care that you or a loved one may need many years down the road. Personal funds and retirement savings can be used to cover the cost of a professional caregiver. Every person’s financial situation is different, but this could be a very wise investment especially if it affords you the privilege of remaining in your home longer.
For those who do not have the personal funds to cover the cost of a professional caregiver, other family members may be able to help provide some funds to defray the cost. This is a very generous and selfless thing to do; when it comes down to helping a member of your family, people gladly rise to the occasion! We would not advise to rely upon this as your sole means for affording professional care; however, it can be helpful to bridge a financial gap.
You may wish to speak to a bank or professional mortgage company about whether a reverse mortgage is the right fit for you and your family. A reverse mortgage is a loan for seniors age 62 and older and is a type of home equity loan that’s reserved for older homeowners and does not require monthly mortgage payments. Instead, the loan is repaid after the borrower moves out or dies. By deferring your monthly mortgage payment, you will have more funds to put toward other essentials like a professional caregiver.
Veteran’s Assistance including the Aid & Attendance Benefit
Veterans and survivors may be eligible for additional financial assistance if they comply with the requirements of the Aid and Attendance Benefit. Requirements include being eligible for a VA pension and needing the aid and attendance of another person to care for you. Be sure to do your research and speak directly with someone who is experienced working with Veterans’ Assistance.
Long-Term Care Insurance
There is the option to purchase long-term care insurance. This is usually purchased when a person was working or younger to pay for future help with Activities of Daily Living. The policy most typically pays a daily rate to cover some or all cost of care. If you start planning early, this could be very helpful when it comes time to cover the costs of professional in-home care to assist you with day-to-day activities.
Depending upon your life insurance policy, you may be able to tap into the policy now with living benefits. These living benefits can help cover the cost of things like an in-home care provider. To understand more about your life insurance options and what your policy covers, be sure to speak directly with your insurance agent to discuss how you might be able to use your living benefits.
Some low income individuals may qualify for Medicaid covered in-home care for a limited time. This varies by state and individuals would have to use a “waiver” home care provider. To learn more about whether or not you qualify for this Medicaid waiver, contact yours state’s Medicaid office to speak to knowledgeable staff about your situation and needs.
Are you concerned about how to pay for the cost of a professional caregiver? Contact us today so we can walk you through the various options that might be available to you!