How To Effectively Pay For Private Care In The Home

Pay for private care

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Paying for private care in the home

With aging comes many ailments that impair seniors’ ability to take care of themselves. Your parents’ situation becomes even more complicated if they live alone. The only family or friends who live nearby can help them are a few relatives or friends.  

It is their desire to age in the comfort of their own homes. The best thing to do in such cases is to hire private care so that we know they are being taken care of properly. Private care can be a great way to ensure your parents are taken care of while they age in their home. There are several options available when it comes to paying for private care.

Benefits to pay for private care in the home


In-home care can provide various benefits for those who need help and support with everyday tasks. Depending on the individual’s needs, in-home care can assist with daily activities such as:

  • Dressing
  • Bathing
  • Medication management
  • Companionship
  • Meal preparation
  • Light housekeeping
  • Transportation to and from appointments

In-home care can also provide emotional support and companionship, which can be especially beneficial for those who are isolated or lonely. In-home care can also provide peace of mind to family and friends, knowing their loved one is well taken care of.

Statistics of paying for private care in the home


The number of hours per week needed to provide care may vary, depending on the needs of the individual. It is important to discuss costs and payment options with your healthcare provider before making a decision. Here are some other statistics:


  • A surprising statistic shows that of those receiving home care services, 44 percent received help and assistance with activities of daily living and personal care.
  • More than 65 million people, or 29 percent of the U.S. population, provide care for a chronically ill or disabled senior loved one each year, spending an average of 20 hours per week with the consumer.
  • Male caregivers are less likely to provide personal care, but 24% helped a loved one get dressed compared to 28% of female caregivers.
  • Only 30% of caregivers provide care for less than a year., 24% of caregivers provide care for more than five years.15% of caregivers provide care for ten or more years.
  • By 2050, the number of individuals using paid long-term care services in any setting will likely double from the 13 million using services in 2000 to 27 million people.

Paying for private care in the home

Whenever we think of hiring a private care worker in the comforts of our home, the first thing that comes to our mind is how we pay for it. Planning for in-home care expenses when you are young and earning would help you stay well prepared, according to Rod Perkins, vice president of insurance regulation with the American Council of Life Insurers. The best time to purchase various policies is when one is young and in good health. But, he adds, “You don’t want to wait until you need it.”

Plan when you are young

There are several insurance policies that you can purchase even when you are about 57 years. Of course, the waiting period for enjoying the benefits may be extended. However, realizing the benefits are tremendous and well worth it is essential. Furthermore, the policies are also changing based on the current requirements. Given all this, it is wise to purchase insurance policies ahead of time. In other words, our senior loved ones can benefit from private care at home.
However, if you could not make any arrangements while you were young, you can even opt for insurance when you are older. There are several sites to help you, such as and benefits.govYou can even consider checking out the National Council on Aging’s The Ultimate Caregiving Expert resource section can also help you figure this out.

Services and insurance policies to  pay for private care

Various services and insurance policies are available to help you pay for private care. Depending on your circumstances, you may be eligible for several programs, or you may be able to explore private health insurance plans or supplemental insurance policies. It’s essential to research all your options and find the best fit for you and your family. You can also contact local organizations and charities that may offer financial assistance. There are other state and federal program services that the elderly pay for personal care in the home. These include the following:

  • Private Pay

Paying for private care with private pay can be difficult for many people. It is important to research the various options available to you and to determine what works best for your situation. One option is to set up an income-based payment plan with a private care provider. This allows you to pay for the services you need on a monthly basis based on your income.

Another option is to use long-term care insurance. This policy covers the cost of long-term care, including private care services. Finally, you can pay for private care out of pocket. This is a good option if you can afford it, as it allows you to pay for the services you need on your own terms. Whichever option you choose, it is important to consider the cost of care, your ability to pay, and how long you will need the services.

  • Life insurance with a living benefit rider

If you’re looking to pay for private care with your life insurance, you may consider a life insurance policy with a living benefit rider. This policy allows you to access a portion of your death benefit while still living, allowing you to use the funds for private care. Be sure to research a policy that meets your needs, and speak to an insurance professional for more information.

  • Long term insurance

Long-term insurance can be a great way to pay for private care. Many policies offer coverage for long-term care, such as home health aides, nursing care, and even assisted living facilities. Depending on the policy, you may be able to pay for the care directly from the insurance policy, or you may need to pay out-of-pocket and then submit the bills to the insurance company for reimbursement.

Before deciding to purchase a policy, it is essential to understand the type of coverage the policy offers, any restrictions or limitations, and the costs associated with the policy. Additionally, you should also consider if the policy covers pre-existing conditions or if there is a waiting period before benefits kick in. It is also important to ensure the policy is still active and up-to-date. You should contact the insurance company directly to discuss your options if you have any questions.

  • Reverse Mortgages

This program was specially formulated for seniors aged 62 years and aboveReverse mortgages are for seniors who can use their home’s equity and withdraw the cash at once or in monthly installments. Paying for private care with a reverse mortgage can greatly access funds while retaining your home’s ownership. To do so, you would need to get a home equity conversion mortgage, or HECM, the most common type of reverse mortgage. With a HECM, you can borrow up to 60% of the value of your home, and the funds can be used to cover private care costs. This loan also has no monthly payments, so you can use the funds without worrying about monthly payments.
However, it is important to understand that the loan balance increases over time and must be repaid when you sell your home or pass away. It is also important to ensure the reverse mortgage is compatible with any long-term care insurance policies you may have. You can contact your local housing authority or a financial advisor for more information about reverse mortgages and private care.
  • Annuity

An annuity helps turn our senior’s pension or any other retirement savings into a steady income. Your loved one can receive the money until death or for several years. There are several ways to pay for private care with an annuity. One option is to use a single premium immediate annuity. This annuity allows you to make a single lump-sum payment and receive payments over time. The payments can be structured so that they are made regularly, or they can be structured to provide a lump sum payment at the time of care.

Another option is to use a deferred annuity.

This type of annuity allows you to make regular payments over time, and the funds are invested in the annuity until you need to use them for private care. Finally, you can use a combination of the two types of annuities, such as a single premium immediate annuity with a deferred annuity. This allows you to make a single payment and then invest the remaining funds in the deferred annuity until you need the money for care. Before making any decisions, it is essential to understand the annuity’s terms and conditions, whichever option you choose.

  • Older Americans Act

The Older Americans Act provides funding for various services that help older adults live independently, including home-delivered meals, transportation, in-home care services, and more. Depending on the state, some of these services may be provided privately and covered by the Older Americans Act.

To pay for private care with the Older Americans Act, you should contact your local Area Agency on Aging or Elder Services agency to find out what services are available in your area and how to apply for them. They can also provide more information about the types of services that may be covered and if private care is one of them.

  • Bridge loan

A bridge loan can be a helpful way to cover the costs of private care to help families arrange finances for senior care. Bridge loans are short-term loans intended to bridge the gap between current financial needs and future income. These loans typically have higher interest rates than traditional ones and are used for a short period, usually no more than 12 months. When considering a bridge loan for private care, it is important to explore all your options and evaluate the terms of the loan. Make sure you understand the fees and interest rates associated with the loan and that you can comfortably make the payments. Additionally, research what other options you may have to cover the costs of private care and compare the benefits and drawbacks of each option.

  • Collective Sibling Agreement

A collective Sibling Agreement (CSA) is an agreement between siblings to pool money and resources to pay for private care. Generally, the agreement is set up so that each sibling contributes a certain amount of money each month or agrees to pay a certain percentage of the costs. It’s important to note that CSA is not a binding legal contract, so it is important to ensure everyone involved understands their responsibilities and expectations. You can use various payment methods, such as cash, checks, PayPal, or credit cards. You may also consider setting up automatic payments to ensure everyone is paying on time. It’s also important to discuss how extra costs, such as travel or extra services, will be handled. Setting up a Collective Sibling Agreement can be a great way to ensure that private care is provided for a loved one without putting a financial strain on any sibling.

  • Disability Insurance

If you have disability insurance, you may be eligible to use those benefits to cover the costs of private care. Check with your insurance provider to determine if they offer coverage for this type of care and the specific eligibility requirements. Typically, you will need to provide documentation of the disability and a doctor’s recommendation for the care. Once you have the necessary documents, contact your insurance provider to start the process of filing a claim for the coverage. Be sure to ask about any other requirements or restrictions that may apply.

  • Veterans Benefits

It is possible to use veterans’ benefits to pay for private care. Depending on the type of care you seek, you may be eligible for various benefits. The VA offers programs such as Aid and Attendance, which provides financial assistance to help cover the cost of in-home care, assisted living, and nursing home care.

Additionally, you can use your VA benefits to pay for home health aides, transportation to medical appointments, and even home modifications to make living spaces more accessible. Contact your local VA office or visit their website for more information about the specifics of these programs.

  • Medicare

Private care can be paid for with Medicare in a few different ways. If you are already enrolled in Medicare Part A, you may qualify for coverage of certain services not covered under original Medicare, such as home health care or skilled nursing services. You can also purchase a Medigap policy, a private insurance plan that supplements Medicare coverage and can help cover the costs of private care.

Finally, you may be eligible for a Medicare Advantage plan, a private plan that provides all Medicare benefits, including those that original Medicare does not cover. Each plan has its terms and conditions, so it is essential to research and find the plan that best meets your needs.

  • Medicaid

Depending on your state, there may be a few different ways to pay for private care with Medicaid. In many states, Medicaid will provide coverage for individuals enrolled in a private health plan. This type of plan, a managed care organization, provides care from various providers, including those specializing in private care.

Additionally, some states offer waivers that allow individuals to receive private care in their homes rather than in a hospital or other facility. Finally, many states have programs covering private care, such as the Programs of All-Inclusive Care for the Elderly (PACE). To find out what options are available in your state, contact your local Medicaid office.

  • Local Area Agencies on Aging

Depending on your individual situation, there are a few different options for paying for private care through Local Area Agencies on Aging (LAAAs).

Another option is to apply for the Program of All-Inclusive Care for the Elderly (PACE). PACE is a Medicaid and Medicare program that helps you pay for long-term care services in the home or in a community-based setting. You should contact your local AAA to find out if PACE is available in your area.


Finally, some LAAAs may offer a sliding scale fee structure depending on your income. This means that you may be able to pay a reduced rate for private care services if you cannot cover the full cost. Your local AAA should be able to provide you with more information about sliding scale fees.

Conclusion on How to pay for private care


Paying for private care can be a difficult decision for many families. Ultimately, various options and resources are available to help make the cost of private care more manageable. For example, some health insurance plans provide coverage for private care, and there are government assistance programs that can provide financial support. Additionally, there are many fundraising initiatives that can help cover the costs of private care, such as crowdsourcing and donation campaigns. Ultimately, it is essential to research the various available options and determine the best approach for your circumstances.

Caregiving can be challenging, frustrating, and highly stressful! But it doesn’t have to be that way. 


  • Giving care with expertise and confidence.
  • Managing your loved one’s daily activities in an organized and structured way.
  • Following a proven caregiving system that provides for your loved one’s needs while also giving you peace of mind.
If the above sounds like what you need and have been searching for, you must enroll in The Ultimate Secrets to Caregiving with LESS Stress and MORE peace course!

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