How do you expect to pay for home care?

Home equity & reverse mortgage

If your loved one owns their home, that equity can fund years of care. A reverse mortgage (for homeowners 62+) turns equity into tax-free cash or monthly income with no monthly payments while they still live at home. A home equity loan or line of credit is another route when there's income to repay it.

Good to know: reverse mortgages carry fees and reduce what's left to heirs, and the home must stay the primary residence, so they fit aging in place, not a move to a facility.

A life insurance policy you already have

Life insurance can often help pay for care now, not only after. Depending on the policy you may be able to use a living-benefits or accelerated death benefit rider (draw part of the payout early with a qualifying illness), sell the policy in a life or viatical settlement for a lump sum worth more than its cash value, or borrow against a whole-life policy's cash value.

Good to know: each of these lowers or ends the future death benefit, so weigh it against what the policy is meant to leave behind.

Long-term care insurance

If a long-term care policy exists, it may cover most or all of the cost of home care. We verify the benefits, handle the claim paperwork, and bill the carrier directly, so you're not fronting the money.

Veterans benefits

The VA's Aid & Attendance benefit can add over $1,400 a month toward in-home care for a qualifying veteran or surviving spouse. Many families never realize they're eligible.

Retirement income & savings

Social Security, a pension, and measured withdrawals from a 401(k) or IRA are the most common source of all. A tax professional can help time withdrawals to keep the tax bill down.

Annuities

A lump sum of savings can be converted into guaranteed monthly income with an immediate annuity, turning assets into a steady, predictable care budget. Certain annuities are also used in Medicaid planning.

Bridge loans for senior care

Short-term loans and lines of credit made specifically for senior care can cover the gap while a home is being sold or while VA or insurance benefits are still being approved, so care can start right away instead of waiting.

Family cost-sharing & caregiver agreements

Siblings often split the cost between them. And if you plan to pay a family member for their help, a written personal care agreement keeps it clear and protects future Medicaid eligibility, an elder law attorney can set one up.

HSA funds & tax breaks

Health Savings Account funds can pay for qualifying care, and a portion of care costs may be deductible as medical expenses on a tax return. A tax pro can confirm what applies to your situation.