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How Families May Afford Home Care

In recent years, home care in Albuquerque has been growing in popularity as families are starting to see the added benefits of allowing family members to age in the comfort of home. While home care is becoming a viable option to help older adults age in place, it can still be a difficult service to finance if you don’t have the right information to help guide your decision.

If you are considering senior home care for an aging parent or loved one, the service may be more affordable than you think – especially if you utilize one or more of the following financing options:

  • VA Aid and Attendance Pension – All U.S. veterans who are at least 65 years old and served during war time are eligible to receive a supplemental income from the government. Spouses and dependents might be able to receive financial support as well. This extra money could be used to help pay for home care if your aging loved one qualifies for the “Aid and Attendance” pension package, available to those who need help on a daily basis. Like with most government programs, the application process can be quite complicated. To ensure all requirements are met, you may want to seek assistance from a knowledgeable Albuquerque senior care provider
  • Reverse Mortgages – There are three stipulations that one must meet to qualify for a reverse mortgage and they are as follows:
    1. 62 years or older
    2. Home approved by FHA
    3. Owner has enough equity to cover existing mortgages

    If your aging loved one meets these three standards, applying for a reverse mortgage to cover home car expenses may be the best bet. By taking a loan against their property, seniors are able to eliminate monthly mortgage payments while obtaining access to cash, worth 20-70% of the home’s value. The loan is usually paid back in full by selling the home after the last cosigner passes away. This eliminates placing the burden of debt on any remaining family members or spouses.

  • Life Insurance Policies – Because statistics show that 70% of adults over 65 will end up needing senior care, seniors are strongly encouraged to purchase long-term care insurance. For those who did not purchase long-term care insurance, you may be able to use your existing life insurance to cover a portion of your home care needs. Here are some ways in which seniors can utilize a current life insurance policy:
    1. Combination Life/Long-Term Care Policy: Recently some insurance companies have been lumping the two policies together due to the lack of people signing up for long-term life insurance. Contract your insurance provider to see if this applies to you.
    2. ADBs (Accelerated Death Benefits): Receive a tax-free advance on life insurance death benefits while still alive. If you or your aging loved one relies on a 24/7 caregiver in Albuquerque to assist with activities of daily living, has received a life-threatening diagnosis, or is terminally ill, then you could qualify for this cash advance.
    3. Life Settlements or Viatical Settlements: This allows aging adults to sell their insurance policies in order to pay for long-term care services. Keep in mind that this may eliminate death benefits and is usually only available to those 70 years and older. Viatical Settlements are available to those who are terminally ill, allowing them to sell their policies to a third party in exchange for a tax-free settlement.
  • Medicare and Medicaid – While Medicare is unable to help fund long-term care needs, it can cover short term rehabilitation or post hospital home care in Albuquerque. Medicaid is, however, available to senior adults who can’t afford long term care on their own. New Mexico also participates in PACE (The Program of All-Inclusive Care for the Elderly) which provides supplemental support services for those using Medicaid or Medicare.

There are many ways that aging adults and their families can receive financial support to help pay for in-home senior care. It’s important to remember that you’re not in this alone; Home Care Assistance of Albuquerque is here to help. Don’t hesitate to contact us at 505-798-0800 with any questions – our phone lines are open 24/7.