Long-Term Care Insurance
The first step in planning for your loved one’s home care needs is to determine if he or she has a Long-Term Care Insurance plan. 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 Long-Term 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.
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. This income can be a welcome supplement for families struggling to provide home based elder care for their loved ones.
There are a number of options available to families with non-liquid assets that allow them to convert those assets to help cover things like home care expenses. Reverse mortgages, home equity lines of credit, Rex Agreements and EquityKey are real estate-based asset conversion programs that provide seniors with financial solutions to their long-term home care needs. In addition to these programs, death benefit loans, life settlements, life care assurance benefits and viatical settlements offer seniors a variety of methods for converting their life insurance policies to pay for home care as well.
There are a number of initiatives designed to help keep seniors and people with families of people with disability who qualify for Medicaid out of nursing homes and other facilities living comfortably in their own homes. These programs will help to cover the cost of home care in cases where that care can be provided at an expense below that of a nursing home.
Tax Credits & Cost of Care Reductions
There are a variety of state and federal programs, initiatives and tax credits that can significantly lower your family’s tax burden effectively reducing the overall cost of care. Call us to discuss how we can help you take advantage of the following options to find out if your family member qualifies: Alzheimer’s Respite Care, Elderly and Disabled Tax Credit, Federal Elderly Care Tax Credit, LIHEAP – Aid for Energy Costs, Medical Expense Tax Deductions, NFCSP Respite Care, State Elderly Care Tax Credit, Veteran’s Administration Respite Care. 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.