Paying for Home Care

Growing older is not for the faint of heart, and the cost of care can be a major factor in your search for home care. It’s often surprising to families to learn just how expensive providing care for a loved one at home or at an Assisted Living, Skilled Nursing Facility or Memory Care Center can be. In home care provides families with one of the most cost effective solutions to caring for an aging loved one compared to an Assisted Living Community or Nursing Home.

Most Common Ways to Pay for Home Care Services

Understanding how to pay for home care can feel overwhelming, especially when care is needed urgently. Below are some of the most common ways families pay for non-medical home care services, along with simple explanations of how each option works.

Private Pay (Out-of-Pocket)

Private pay means home care services are paid directly by the individual or family, typically using personal income, savings, retirement funds, or family support.

This is the most common payment method for home care. It offers the greatest flexibility in scheduling, level of support, and length of services. Private pay allows families to start care quickly, adjust hours as needs change, and receive support without waiting for third-party approvals.

Key points about paying for home care with Private Pay Funds (Out-of-Pocket)

• Flexible schedules from a few hours per week up to 24/7 care
• Ideal for short-term, long-term, and transitional care
• Immediate start of services

Long Term Care Insurance (LTCI)

Long Term Care insurance policies are specifically designed to help cover services like in-home care, assisted living, and skilled nursing facilities.

Many policies will reimburse for non-medical home care services, including help with bathing, dressing, mobility, meals, medication reminders, and supervision. Coverage, elimination periods, and daily benefit amounts vary by policy.

Assistance Home Care supports families by helping them understand their policy and navigate the claims process to maximize available benefits for home care services.

Key points about paying for home care with Long Term Care Insurance (LTCI)

• Can offset or significantly reduce out-of-pocket costs for daily home care services
• Often requires a licensed healthcare professional to assess the individual based on their ADLs and IADLs
• Assistance Home Care provides claim support and submits invoices and documentation at no cost
• Policies often have an elimination period where the policyholder must pay out-of-pocket for services rendered before policy kicks in

Community or Organizational Caregiver Respite Grants

Some families qualify for community-based grants or financial assistance programs offered through local organizations, non-profits, disease-specific foundations, or county agencies.

These programs may provide temporary funding, respite care assistance, or limited home care hours for individuals who meet specific financial, medical, or situational criteria.

Key points about paying for home care with Community or Organizational Caregiver Respite Grants

• Often short-term or supplemental support
• May help cover respite care or transitional periods
• Availability varies by diagnosis, income, and location

Veterans Benefits or Aid and Attendance

The VA Aid and Attendance benefit is a pension enhancement available to qualifying Veterans and surviving spouses who need assistance with daily living activities.

This benefit can be used to help pay for in-home care services, including personal care, mobility assistance, supervision, and support to remain safely at home.

Assistance Home Care is an accredited VA home care provider serving St. Louis and St. Charles, Missouri, and can assist eligible families in understanding how VA benefits may apply to home care.

Key points about paying for home care with Veterans Benefits or Aid & Attendance:

• Monthly financial benefit paid directly to the Veteran or spouse
• Can be used for non-medical in-home care services
• Supports aging Veterans who wish to remain at home
• Veteran must be eligible for services through the VA

Reverse Mortgage

A reverse mortgage allows homeowners age 62 or older to convert part of their home’s equity into usable funds without selling the home.

These funds can be used to pay for home care services, helping individuals remain in their homes while receiving the support they need. Repayment typically occurs when the home is sold or the homeowner no longer lives in the home.

Key points about paying for home care through a Reverse Mortgage

• Allows seniors to age in place while accessing funds
• Can support long-term home care needs
• Often used when significant home equity exists

Life Insurance Conversion (Life Settlements or Hybrid Policies)

Some life insurance policies can be converted into a long-term care benefit plan or sold through a life settlement to generate funds for care.

In certain situations, a portion of a life insurance policy’s value can be redirected to pay for home care services, allowing families to use an existing asset to support care needs.

Key points about paying for home care with Life Insurance Conversion (Life Settlements or Hybrid Policies)

• May create a monthly benefit specifically for care
• Can supplement private pay or insurance benefits
• Useful when policies are no longer needed for their original purpose

Everyone is impacted by aging. Whether it be our loved one’s journey of aging or our own, everyone is affected by a cost of providing aging-related care. View Genworth’s Cost of Care Survey for the latest trends in Home Care costs by area compared with other care settings.