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Financing care at home
The prospect of paying for long term care can be worrying and confusing. However, you can be reassured by the fact that there are various financing options available: indeed, thousands of individuals in many different situations have managed to finance their long term care successfully.
When considering what type of long term care best meets your needs, whether that is to move into a care home or stay in the comfort and safety of your own home and receive a live in care service, you will need to address how you will finance this and what funding may be available to you. It is not always necessary to have to sell your much-loved home to move into a residential care home, there are many ways in which you can release or arrange finance to enable you to receive care at home – after all staying in the familiarity of your home for as long as possible, is what most of us desire.
In order to decide how best to pay for live-in care for you or a loved one, it is vital to consider all of the available options. It is also helpful to consider any potential scenarios that you may face; for example, in the case of an individual who is living with dementia, they may need to grant a loved one Power of Attorney in order to continue administering payments once the condition has progressed to an advanced stage.
Seek specialist advice
An independent, specialist, financial advisor will be able to advise you about your options in the first instance. Seeking qualified guidance will enable you to understand fully all of your financing options. Many high-quality live-in care providers work with finance professionals who specialise in advising individuals and their families about paying for care, so do ask your prospective home care provider for a recommendation.
Weighing up the costs
Understandably, you will want to understand the likely cost of care before you commit to any service or provider. The only way to do this is to have a full consultation with a care provider. Each individual’s situation is specific, and a high-quality care provider will conduct a full assessment of your situation and tailor and personalise a care plan based on the individual’s needs and requirements. However, the cost of live-in care can often be lower than the cost of high-quality residential care, especially in the case of elderly couples who both require care.
A high-quality live-in care provider will ensure that they are transparent about the cost of care from the outset. This will help you to gain as accurate as possible an idea of the amount you will need to pay.
A snapshot of the options
High-quality live-in care providers are well-versed in working with individuals with complex financing situations. After consulting with a financial adviser, you may be able to access one or more of the following financing options:
- Care fees annuity policy: where an individual pays an annuity insurance provider a one-off sum in return for guaranteed yearly payments. These ensure peace of mind for cared-for individual and their family because these payments are guaranteed and payable for life. The best way to find out about such policies is via your care provider, who can put you in touch with an independent financial expert specialised in financing care.
- Releasing equity from the home: unlike selling up, releasing equity enables an individual to continue to live and be cared-for in their much-loved home while benefiting from the value that has built up over the years.