When you or your loved one is in need of a caregiver there may be options available for you.
Traditional health insurance, social security, Medicare and Medicaid do not pay for personal in-home care services because they are considered non-medical care.
Each home care services company has an hourly rate and a live-in rate and they all vary in price. Privately owned locally operated providers can offer you flexibility to ensure care fits your budget and can customize care for the most cost-effective affordable care, large corporations and franchises cannot offer you that flexibility and cost-containment and tend to be more expensive. You must ensure that the company is licensed by the State of Illinois and that each caregiver is their direct employee, not a contract employee, and is bonded and ensured through the company and all payroll taxes, employment regulations and insurance is handled by the company. Always look only for companies who are licensed, bonded and insured! The company must also perform extensive screening and background checks on their caregivers and provide extensive caregiver training and continuing caregiver education as well as provide consistent Care Management services included in the price. Company Care Managers must be qualified and provide initial and on-going caregiver supervision and care management to ensure client is well cared for and is satisfied with their care and provide client and their family with Peace of Mind. Home Care Company and their caregiver must also work closely with and compliment other health and services providers for the client.
Long Term Care Insurance (LTC, LTCI).
Many people have purchased long term care insurance which pays for long term care services in many settings which includes caregiver services at home. We will verify your insurance benefits with your carrier according to the policy you have purchased and will coordinate and complete all needed reimbursement documentation for you with no effort at all for you and usually no additional out of pocket expense. If you or your loved ones are already in need of such long term care it is unlikely that you will be approved for such policy by the insurance companies or the cost of coverage they offer you is likely to be prohibitively expensive.
Some life insurance policies include a Long Term Care (LTC) Rider which provides Long Term Care insurance coverage described above. We will help you review and verify your life insurance policy and verify benefits under such policy with your carrier, as well as determine your eligibility for such benefits. If you do, will coordinate and complete all needed reimbursement documentation for you with no effort at all for you and usually no additional out of pocket expense.
If you are a veteran or a surviving spouse of a veteran requiring in-home care services, you may be eligible to receive such pension benefits from the Veterans Administration (VA). The Veterans Administration (VA) offers a special pension for this purpose with an Aid and Attendance (A&A) benefit that is largely unknown for the people who may be able to benefit from it. This special pension allows veterans and their surviving spouses to receive additional monetary benefits to help pay for in-home care services. Additional information about these benefits can be found here >>.
We will help you determine if you qualify for these benefits, and if you do, to collect these benefits on ongoing basis.
Community Care Program.
Established and operated by Illinois Department on Aging, Community Care Program helps low income senior citizens to remain independent and remain in their own home by providing in-home services as an alternative to nursing home placement. The Community Care Program provides services to any person who applies for the program and meets all current eligibility requirements which include 60 years old or older, a U.S. citizen or legal alien, resident of the State of Illinois, have non-exempt assets of $17,500 or less (these assets do not include home, car or personal furnishings or belongings), and have an assessed need for long term care by scoring 29 points or higher on the “Determination of Need” form. We will help you determine if you qualify and to apply to this program and receive approved care if you do.
There are a number of options available to you and your family to convert various non-liquid assets into income to help cover your expenses including home care expenses. Reverse mortgage, home equity line of credit, securities based loans, Rex Agreements and EquityKey are real estate property-based asset conversion programs that may provide you with financial solutions to your long-term home care needs while remaining in your home. In addition to these programs, lump-sum retirement pension plan benefits, as well as death benefit loans, annuities benefits and loans, life settlements, life care assurance benefits and viatical settlements offer a variety of methods for converting existing life insurance and annuity policies to help pay for home care. We can help direct you to appropriate professionals for counsel and evaluate these options.
Not only can care be provided less expensively in the home, but evidence suggests that home care is a key step toward achieving optimal health outcomes for many patients. Fortunately, a powerful financial planning tool, a Reverse Mortgage, is available to help people access the wealth in their homes and help pay for the care they need—when they need it most.
Since its inception in the early 1960s, reverse mortgage loans have quickly emerged as a popular tool to help homeowners convert a portion of their home equity into cash. Loan proceeds can be used for anything a borrower may possibly need, including paying for the cost of medical care or assistance. And for the independent senior, in-home care is the obvious choice. For qualifying borrowers, funds received from a reverse mortgage can be used for anything you desire, from help with household chores, to round the clock in-home care and anything else you may need the funds for without restrictions. The amount of money that a borrower receives from a reverse mortgage loan varies from person to person and is dependent on a number of factors. These include the borrower’s age, the amount of equity a borrower has in the home, current interest rates, the borrower’s mortgage balance, and the home’s appraised value.
Many homeowners who sign up for a reverse mortgage loan choose the federally-insured Home Equity Conversion Mortgage (HECM). Protected by the Federal Housing Administration (FHA), this type of reverse mortgage is government-regulated and is a non-recourse loan. What this means to the borrower is that they are protected from ever owing more than the value of the home when sold. The home is the only asset that a lender can use to recover the loan. When signing up for a reverse mortgage, the borrower also has a choice in their disbursement option. This includes the choice to receive funds as a lump sum, monthly installments, a line-of-credit, or any combination of the three. Borrowers also like to use the loan as a financial safety net for unexpected medical emergencies choosing the standby and growing line-of-credit disbursement option. Because interest is not charged on the unused portion of credit, many homeowners feel secure the money is available to use at a moment’s notice for unexpected emergencies.
If you get a reverse mortgage, you will be able to age in place in your home as long as you comply with all loan obligations such as paying the property taxes and insurance. We can help you understand how a reverse mortgage works and if it is the right loan for you. With your home equity and the right financial tools, you are on your way to securing an independent and comfortable retirement in your 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 and your family’s tax burden effectively reducing the overall cost of care. Please consult your accountant (CPA) or tax professional.