Trying to figure out how you can pay for in home care for a loved one?
You are not alone trying to find a way to keep mom or dad at home especially if they have already had a bad nursing home experience. Trying to find a way to pay to keep an elderly parent at home instead of a nursing home may seem impossible, and you probably feel like you are the only person with this issue. You are not alone. In fact, part of the reason you continue to hear about low inventory in the housing market is because seniors are “aging in place” I can remember over a decade ago working with homeowners, their adult children, power of attorneys, and guardians to use the equity built up in the home to finance in home care.
To throw a little information at you that may or may not shock you; in Birmingham a convalescent nursing home will run $9-$10 thousand a month. In home care 24 hours a day and 7 days a week will cost approximately $8-$9 thousand a month using an individual not through a service and using a in home service full time will cost approximately $12,000 plus monthly.
I recently had someone contemplating what to do tell me that his mother had finished physical therapy and she was now in the convalescent nursing wing. He didn’t know if taking her home with a full-time sitter was the right thing because of the level of care she needs. I explained to him that in my opinion based on my experiences that a nursing home would at the very best check in on her every 2 hours. The in-home care sitter would basically be in her bedroom with her over 95% of the time.
If you are still thinking how in the world does anyone afford any of these, I can’t shine some light on that.
Hypothetically, let’s say that your 88-year-old father lived in a $250,000 house and we take out a Reverse Mortgage on it.
My first question is “did he serve in the military? If so, an honorably discharged veteran qualifies for $2,200 a month “aid and attendance”, and surviving spouses also get assistance. Next, how much is his social security check? Let’s say $2,200 a month. I can set you up on a monthly payment of $5,600 a month for 2 and a half years. Combining all of these would pay for in home care at $10,000 a month.
This can be greatly stretched out by several family members staying with him or her one to two nights a week. If you are only needing daytime care, that will dramatically reduce the cost. With 60% of us expected to need some kind of care in our lives and only a few have really planned for it, my industry and the elder care industry see multi-generational families living in one home. The cost can be monumental and insurance agents tell me that if you are 50 and healthy, you can’t afford long term care insurance; especially with an in-home care rider. From my research within a decade of 15 thousand people turning 65 each day, there won’t be enough nursing home beds, even if you can afford them and don’t mind the minimal level of care.
For more information on how this may help you be able to afford to pay for in home care call Scott Underwood with Reverse Mortgage Alabama in Birmingham at (205) 908-2993 or Huntsville at (256) 677-9767.
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