One of the most common assumptions is that health insurance covers in-home personal care. In-home care is usually not covered by insurance. This means that families must cover the cost themselves out-of-pocket. If traditional insurance doesn’t cover personal care, what options are available to cover the cost? This post discusses those options and what you need to know about them.
Long-Term Care Insurance and Life Insurance
Long-term care insurance and life insurance are two of the insurance options that will pay for care in the home. Seniors with life insurance can take a loan against the value of their policy or surrender the policy completely for a cash payout. There is relatively new option called life insurance conversion. Seniors who choose it receive a specific amount for in-home care services and the party they sell the policy to is responsible for all payments for the policy.
Long-term care insurance does cover in-home care services. One should purchase this type of insurance long before it’s needed. The longer people wait to buy this type of insurance, the likelihood increases that they’ll be denied for health reasons. The price of the policy can go up after purchase as well.
Local Government Assistance
Local government resources are available to help seniors pay for care. Find out what programs are available by visiting the elder care locator for your local area. It has contact information and links to agencies that offer referrals and programs related to senior care.
Paying Out of Pocket
The most common way seniors pay for in-home care is to use a combination of life insurance policy money, savings, investments, or borrowing through a home equity line or reverse mortgage. Using real estate to finance care should be considered carefully before proceeding because it is a complex process.
If you are looking for in-home care in Newport Beach or Orange County, CA, consider Optimal Senior Care Solutions. Our caregivers are qualified, trained, and background checked. To learn more about our services, reach out to a senior care expert today!