Home care allows seniors to live safely and comfortably in their own homes as they age 



Cost of Care

Home Care will enable seniors to age in place safely and comfortably

In-home care services help seniors keep their independence while giving families peace of mind, making home care a popular option for both seniors and caregivers. 


One major question still remains:

How much does home care cost, and how can you pay for it?


While some people worry about the financial side of home care, having the right information and support can make planning easier. This includes understanding the cost of care, finding creative ways to pay, and getting useful tips to make smart choices.



What Does Home Care Cost? 

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The cost of home care services can vary depending on location, level of care needed, and duration of services. According to the Genworth Financial Cost of Care Survey, non-medical in-home care that assists a person in bathing, dressing, and meal preparation costs, on average, between $27 and $33 an hour. The costs are higher for seniors who require medical care, including skilled nursing or physical therapy.


Families may pay $4,000 or more monthly for home health care aides—a more affordable option than nursing homes, which can cost up to $8,000 per month.

Why Is Home Care a Valuable Option?

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Despite the expense, home care offers significant benefits:



Aging in Place: Seniors remain in the comfort of their own homes.

Personalized Attention: Care plans are fully tailored to the individual’s needs.

Family Integration: Families can actively participate in caregiving.


But what options are available to ease the financial burden? 

Funding Home Care with Life Insurance

Life insurance isn’t just for after you’re gone—it can be a valuable tool for funding care during life. 

01

Accelerated Death Benefits (ADB) 

Many life insurance policies allow policyholders to access a portion of their death benefit early if they’re diagnosed with a terminal illness or if they cannot perform two or more activities of daily living (ADLs). These funds can be used for home care but will reduce what is paid to beneficiaries later.

02

Life Settlements or Viatical Settlements 

Seniors may sell their life insurance policy to a third party for a cash payout, often higher than the surrender value but less than the death benefit.


  • Life Settlements are ideal for seniors who no longer need their policy.
  • Viatical Settlements focus on cases where the policyholder has a terminal illness.


Both options provide immediate funds to cover care expenses but require careful consideration of long-term financial impacts.

03

Life Care Conversion

Lifecare conversions are an often-overlooked option that turns an existing policy into a long-term care benefit account. This account directly pays for approved services like in-home care without affecting Medicaid eligibility.



Life insurance can bring peace of mind to families seeking extra funding for home care, but it’s not the only solution. 

Other Avenues to Pay for Home Care 

To make home care accessible, several financial avenues and assistance programs are available. 

Personal Savings and Investments 

01

Family savings, pensions, or income from IRAs are frequently used to cover care. For homeowners, a reverse mortgage can turn home equity into immediate cash, funding care until the home is sold. Be sure to seek advice from financial experts to understand risks and benefits.

02

Veterans Benefits 

Veterans and their surviving spouses may qualify for the Veteran Aid & Attendance Benefit, which can provide additional income to pay for home care. The U.S. Department of Veterans Affairs (VA) offers programs like Homemaker and Home Health Aide Care or Veteran-Directed Care for eligible seniors. 

03

Medicare and Medicaid 

While Medicare provides limited coverage for medically necessary home care, Medicaid offers more comprehensive assistance through waiver programs. Medicaid eligibility varies by state, but it may cover non-medical and medical care services for eligible low-income seniors. 

04

Long-Term Care Insurance 

Long-term care insurance is designed to cover services like home care, assisted living, or nursing homes. Policies must be purchased before care is needed, but they can offer significant financial relief when activated. 

05

Community Resources and Nonprofits

Local nonprofits, senior centers, or programs like Meals on Wheels can provide low-cost or free complementary services, like meal preparation or transportation, to reduce overall home care costs. 

06

Family Contributions 

Some families create collective cost-sharing agreements, where siblings or other family members split the cost of care. Clear communication and written agreements are vital to ensure contributions remain equitable and conflict-free. 

Planning Ahead for Peace of Mind 

Proactively planning for home care ensures you or your loved ones can access the support they need without financial stress. Here are some steps to guide your decision-making process:

01

Evaluate Needs Early 

Consider current and future care requirements based on health trends and quality of life preferences. 

02

Familiarize Yourself with Costs 

Research average home care prices in your area and create a realistic financial plan. Don’t forget to factor in inflation. 

03

Consult Financial Advisors 

Certified financial planners, elder law attorneys, and accountants can provide tailored advice on funding options, ensuring you make the best use of available resources. 

04

Explore Local Resources

Programs like Area Agencies on Aging can guide you to support services suited to your budget. Many offer free consultations to help identify care options. 

Empower Yourself with Support

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Managing home care costs may feel daunting, but you are not alone. By combining creative funding solutions—like using life insurance—with public programs or personal planning, you can craft an affordable care plan that meets your needs.


Now is the time to take control of your home care decisions. Contact local resources, consult professionals, and consider options like insurance or veteran benefits to support aging in place with dignity and confidence.


If you need further help determining your best path forward, visit our recommended resource at Elder Options of Texas or reach out to us directly for free planning tools.