It can be quite a struggle trying to find ways to pay for long-term home healthcare for someone that you love, especially if this wasn’t “in the plan” when you were organizing and building your finances for your later years. With the “sandwich generation” squeeze, this is becoming even more difficult for Canadian adults supporting both their children and their parents.
If you find you are in this situation or someone you love is dealing with this problem, hopefully you’ll be able to use the following information to facilitate the kind of care that you or your loved ones deserve.
Assess all of the benefits that you might be owed
It is very likely that you have acquired and earned handful of benefits throughout your life that may be able to pay significant dividends now that you need to take advantage of home healthcare.
For example veterans have the opportunity to take advantage of significant benefits provided by Veterans Affairs. The Federal Government will fund home care services for Canadians who actively served in wartime. Individuals that have retired with 40+ years of service in most companies have accrued benefits they are able to take advantage of, and you may have even invested in extra insurance that gives you access to further benefits.
Long-term care insurance is a big boost
Long-term care insurance is one of the easiest ways to finance your home care, though you’re going to need to take advantage of this policy quite a while before you find that you actually need home care service. Speak with your insurance broker or advisor about private health insurance options that can help cover some of the cost of in-home care.
Reverse mortgages are effective solutions when used appropriately
More and more elderly homeowners are taking advantage of reverse mortgages to finance their home care, and it’s one of the savviest decisions that they are able to make – so long as it is used appropriately and through a legitimate mortgage provider. Reverse mortgages are calculated based on the age of the homeowner, the location of the home, and the home’s current appraised value.
Life insurance may pay for in-home care
Not all life insurance policies are going to provide provisions for in-home health care, but many of them do. As opposed to traditional life insurance, you may be able to receive payments when you or your loved one is still living. Coordinate with your in-home care provider and insurance provider to arrange this option.
You may be able to tap into an annuity
Though this is a little bit riskier, annuities can be used to pay off in home care. You’re going to want to make sure that you have set up an annuity exchange with a reasonable and reputable company before signing on the dotted line.
Assistive Devices Program (ADP)
In the province of Ontario, the Assistive Devices Program (ADP) can help absorb some of the costs of assistive devices for individuals with long-term physical disabilities. This equipment includes wheelchairs and mobility aids, oxygen delivery equipment, visual aids, insulin pumps, and more. The money saved on these costs can be directed toward in-home care.
Disability Tax Credit
The Disability Tax Credit (DTC) is a non-refundable tax credit for individuals with “severe and prolonged impairment in physical and mental functions.” The tax credit can help alleviate some expenses associated with the disability. Those who are eligible for the DTC are also eligible for other disability benefits in Ontario and across Canada, such as the registered disability savings plan and working income tax benefit. We will explore this topic more in-depth in an upcoming article, so stay tuned.
At Qualicare Family Homecare, we want to help you or your loved ones continue to live fulfilling and independent lives. We’ll work together to find a payment strategy that make sense for you. Give us a call at 613.366.2899.