There are many options for senior care to help older adults get the care they need. Before making this decision, however, you will want to consider the financial situation for everyone involved so you can ensure they receive consistent services for as long as they need them.
Understanding How to Pay for Senior Care Services
The cost of care for an older adult will vary depending on your location and whether the caregiver provides care daily or hourly. Specific care requirements may also impact the overall price. While senior home care can be costly, many families have found effective ways to cover the costs and ensure the older adults in their lives get the care they need.
5 Ways to Make Paying for Senior Care More Accessible
Before committing to a home care option, consider how you will pay for it. Some of the many payment options available include:
1. Collective Sibling Agreements
With a collective sibling agreement, a child with the available funds can pay for their parent’s care with the understanding that they will receive this money back from their collective inheritance or after the sale of their parent’s house or estate.
2. Reverse Mortgage
With reverse mortgages, an older adult can use their home’s equity as a source of cash. Instead of borrowing a specific amount of money, they receive the agreed-upon amount from the lender with the understanding that the loan will be repaid after the owner’s death through either the home becoming the property of the lender or the loan being paid off by the estate. The amount owed will increase over time as interest and fees accrue.
Reverse mortgages do have some limitations — to get one, you must be 62 or older and either own the home or have a small balance on the original loan.
3. Annuity
An annuity allows one to turn retirement savings into a steady income stream that continues paying out. Since an annuity is a mixture of an investment fund and an insurance policy, your loved one will invest the money at a fixed or variable interest rate. Once it reaches an agreed-upon date, you can begin making withdrawals you can use for home care.
4. Medicare
Medicare offers limited coverage for home care. However, it can be a helpful way to pay for care after a senior leaves a hospital or rehabilitation facility. If you decide to use Medicare to help cover costs, you must sign a contract through a Medicare-certified industry for skilled nursing care and therapy based on an expected recovery period.
5. Long-Term Care Insurance
Long-term care insurance is one of many private insurance options that aid in covering the cost of home care and assisted living. Make sure to apply in advance, as it can be more difficult for seniors to get coverage once they reach an advanced age. An applicant in their 50s or 60s is more likely to get coverage than those who are 75 or older.
Find Affordable and Compassionate Caregivers With CareGivers of America
Ensuring your loved one has the care they need is a significant concern for many families. Let CareGivers of America take that burden off your shoulders with our ability to refer a qualified home care provider. We match caregivers with older adults for various needs, including respite and Alzheimer’s care, and we are happy to work with you to determine which caregiver is best for your situation. Complete our online contact form to learn more today.
