Private Financing Options for Homecare

What type of Private Financing Options are available in addition to Private Pay?

It’s difficult to predict if or how much care you will need, who will provide it, and how much it might cost. It’s easier to predict that if you need a lot of long-term care services, you will have to pay for some or all of it yourself. That’s why more people are looking into private financing options to help pay for their long-term care.

Private long-term care financing options include:
  1. Reverse Mortgages

  2. Long-Term Care Insurance

  3. Trusts

  4. Annuities

    Which option is best for you depends on your age, your health status, your risk of needing long-term care services, and your personal financial situation. The charts below show how age and health status may affect your options.

    Your health status

    Some methods of paying for long-term care services require that you undergo health screening. Some options require that you be in relatively good health. In many cases, this means that you do not currently need long-term care services and do not currently have a debilitating chronic condition such as Parkinson’s Disease that would almost certainly mean you would need long-term care eventually. In contrast, some options are only available to you if you are in poor health.

    The table below shows which payment options to consider given your current health status. 

    Good Health Poor Health Health not Important
    • Long-term care insurance
    • Options with life insurance
    • Saving for long-term care
    • Deferred long-term annuity
    • Reverse mortgages
    • Continuing care retirement communities

    Your age

    Some private payment options are good choices for older people while others make more sense for younger people. In general, long term care insurance costs less if you purchase it at a younger age. Also, you will be in a much better position to save up for your long term care needs if you start at a younger age.