3 clever ways to fund home care services
It happens to all of us. At some point in our lives, we’re all going to be in need of home care services and senior care. It’s a fact of life that’s easy to push to one side, but it’s much easier to tackle head-on sooner rather than later.
Unfortunately for many Australians, affordable senior care and respite care isn’t always easy to come by. The price of in-home assistance has risen sharply over the past 10 years, with the average now resting at $3,800 a month.
There are, however, several steps you can take to make sure you’re as prepared as possible for funding senior care. In this article, we’re going to cover the top 3 methods for funding in-home respite care.
1) Private insurance
When it comes to private insurance, there are a couple of options to consider if you’re looking to fund senior care or respite care. With long-term care insurance, flexibility is the main advantage that you should look out for.
While some policies won’t cover in-home respite care, others will base their approach on the severity of your loved one’s condition as well as the type of health care agency you’re choosing to work with. If you’ve landed yourself a more flexible policy though, you’ll actually be designated a daily amount for caring for your loved ones. These are the ones you want to keep an eye out for.
If you’ve had a life insurance policy ticking over in the background for several years, you might be able to cash it in for a lump sum. This is well worth looking into, as it’ll offer you a set amount of cash which you can put towards a sustained level of home care services.
2) Collective sibling agreements
Both family and personal assets are commonly used as a means of funding home care services.
For those who can’t afford to fund these themselves, families can set out agreements by which they each contribute a proportionate share of funds to the person who is responsible for overseeing the care.
For the sake of clarity and protecting everyone’s interests, these agreements should never just be verbal. They should always be laid out in writing to give those involved peace of mind.
3) Reverse mortgages
In some situations, a reverse mortgage can be a great way of freeing up the extra money required to fund home care services. By using the equity tied up in their properties, seniors can fund their respite care without having to dip into their savings.
When setting up a reverse mortgage, funds can either be provided all at once or in monthly instalments, so work out what your preferences will be. Be sure to look into any local requirements, however, as these may differ from state to state.