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Funding care at home

If you or your relative has reached a point where care at home is required there are lots of options open to you from a range of service providers providing round-the-clock live in care. However, it is vital to consider how you are going to fund it, as state funding is not available to many. Sadly, many local authorities on tight budgets can only provide funding to a limited number of people and funding is means tested to determine who receives help. For many people, self-funding is the route they must take to secure quality live in care for themselves or their loved ones.

There are so many different options and variables involved in costing long term care provision, which is dependent on how it is delivered and the level of care required. However, it is fair to say that care at home is an expense that needs to be carefully planned for. You may need to employ the services of a live in carer for a number of years and accordingly this will involve a degree of financial commitment. Whilst this is money well spent, it needs to be carefully planned for and managed.

Any high-quality live in care provider will be able to present you with a number of options regarding care and will help you obtain advice about the one that best meets your care requirements and will help ensure you can meet the cost of care at home.

The good news is that care at home is typically cheaper than residential care. This comes with the added benefit of continued capital appreciation in the family home, as well as the reassurance that you do not have to leave the comfortable and familiar surroundings of your home.

There are various ways to fund live in care. If you have some free capital or equity you may wish to pay a single lump sum into an annuity policy that will guarantee a fixed payment to fund your care for as long as you need it. The cost is based on how long the insurer thinks you will require care for and the level of care you require.  It is possible to fund the cost of the annuity by releasing capital from your home through an equity release scheme.

It is vital to consult with a financial advisor who is experienced in planning for long term care when thinking about how you will finance long-term live in care for yourself or a loved one. Home care companies will normally be able to recommend, or will work with, specialist financial advisors who can provide sound advice on funding options. There may even be tax benefits involved with these options. Alternatively, you may wish to consult with your choice of financial adviser. A list of independent financial advisers can be obtained from unbiased.