When it comes time to find in-home care for your parent, friend or relative, paying for this important service is probably the last thing on your mind. After all, it’s hard enough having to find a perfectly matched, capable and compassionate caregiver to meet your loved one’s changing needs. Nevertheless, it’s important that you and your family draw up a financial plan to cover the cost of care. This helps to ensure that your loved ones are comfortable, secure and cared for as they age and that your family’s financial resources are preserved in the process. The good news is that there are a number of resources and options available to help you with that plan.

In order to help you weigh each option and plan accordingly, we’ve compiled the following list of ways to pay for your beloved elder’s home care needs. Of course, as with anything, there are pros and cons to consider with each option so it’s important to do as much research as possible.

Long-Term Care Insurance

Since individuals who require non-medical in-home care are not sick in the traditional sense, traditional health insurance does not provide for these needs. Having a LongTerm Care Insurance policy in place prior to any major changes in the health and mobility of your loved one guarantees that they will have complete home care coverage assistance available if and when they need it.

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Private Pay

For individuals without Veterans’ benefits or long-term care insurance, private payment for home care is very often the only option that is initially available when it comes to covering the cost of essential home care. Though not ideal, in addition to Social Security benefits and private pensions, drawing on savings is sometimes the most immediate means of covering the expense of in-home care.

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Veteran’s Benefits

The Veteran Aid & Attendance Pension program offers families and individuals an additional method of meeting home care costs. Whether or not you or your family member qualifies for the A&A program, the VA allows households to deduct the annual cost of paying for in-home care when calculating their regular pension benefit. This annual cost is then used to calculate the benefit based on a new “countable income” and allows families earning more than the pension benefit to receive a disability income from the VA.

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Additional Payment Options

Don’t let the cost of home care stand in the way of providing your loved one with the temporary, part-time or live-in care and companionship that he or she needs. If long-term care insurance, Veterans benefits and private payment are not viable options for your loved one, don’t despair. There are a variety of additional resources and common payment options available, such as Medicaid Programs, Asset Conversion, or Tax Credits & Cost of Care Reductions

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