Unique Ways Seniors Can Pay for In-Home Caregiving

As the aging population grows, so does the demand for quality in-home caregiving. While the benefits of aging in place are well known—comfort, independence, and familiarity—many seniors and their families find themselves asking the same question: How can we afford it?

In-home caregiving can cost anywhere from $20 to $30 an hour or more, depending on location and care needs. But the good news is that there are lesser-known and creative ways to cover the costs beyond just dipping into savings. Below are some unique options that seniors and their families can explore.

1. Veterans Benefits (Aid & Attendance Program)

If the senior or their spouse served in the military, they may qualify for VA Aid and Attendance benefits. This program offers monthly payments in addition to a VA pension, specifically to cover long-term care needs—including in-home assistance.

Who qualifies:

• Veterans who served at least 90 days of active duty, with at least one day during wartime.

• Must require help with daily activities like bathing, dressing, or eating.

Tip: Many veterans and families are unaware they qualify. Contact Careworthy Home Care, a local Veterans Service Organization (VSO) or accredited VA claims agent for help filing.

2. “Forgotten” or Overlooked Pensions

Many seniors worked for companies decades ago that offered pensions. Some pensions are never claimed, especially if the company merged or dissolved. The Pension Benefit Guaranty Corporation (PBGC) helps locate and recover these unclaimed benefits.

Action Step: Visit pbgc.gov and search for the senior’s name or former employer. Even small monthly payments can offset caregiver costs.

3. Medicaid Home and Community-Based Services (HCBS) Waivers

Medicaid isn’t just for nursing homes—it also provides in-home care support through state-based HCBS waivers. These programs are designed to help low-income seniors remain at home and receive care rather than moving into institutions.

What’s covered:

• Personal care assistance

• Home health aides

• Case management

• Medical supplies

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Note: Income and asset limits apply, but many states allow “spend-downs” or special rules for married couples.

4. Crowdfunding Through Family and Community

Platforms like GoFundMe or GiveButter have been used successfully to raise funds for in-home caregiving. While it may feel uncomfortable at first, many families want to help but don’t know how. A crowdfunding campaign can unite family, friends, and neighbors to pitch in.

Best Practices:

• Share a compelling story and updates on how funds are used.

• Include pictures or videos.

• Set a clear financial goal and explain what it will cover (e.g., 10 hours/week of care for 3 months).

  
  

5. Life Insurance Policy Conversions or Settlements

Some seniors can convert a life insurance policy into a long-term care benefit plan. Others may qualify for a life settlement, selling the policy for a lump sum (often higher than the cash surrender value).

Eligibility varies, but this can be a game-changer for those with permanent life insurance policies they no longer need.

6. Shared Caregiving with Family Stipends

In some states, Medicaid or Veterans programs allow family members (excluding spouses in many cases) to be paid as caregivers. This formalizes the role of a child or relative already providing care and helps reduce out-of-pocket spending.

Additionally, some families create informal contracts where siblings contribute financially to pay a primary caregiver sibling who left work or cut back hours.

7. Reverse Mortgages (Home Equity Conversion Mortgage - HECM)

For seniors 62 and older who own their homes, a reverse mortgage allows access to home equity without selling the house. The funds can be used for any expense, including caregiving.

Important caveats:

• The home must remain the senior’s primary residence.

• Consider fees, interest, and inheritance implications.

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8. Long-Term Care Insurance (Even Lapsed Policies May Help)

Some seniors may have long-forgotten long-term care insurance policies purchased years ago. Even if premiums lapsed, some companies offer nonforfeiture benefits—small but helpful payouts based on what was paid in.

Pro tip: Review all old insurance paperwork or consult with a long-term care insurance agent for a policy audit.

Final Thoughts

Paying for in-home caregiving often requires creativity, research, and support from a network of people and programs. From veterans benefits and Medicaid waivers to rediscovered pensions and community crowdfunding, there are many avenues worth exploring.

If you're just starting this journey, consider speaking with a geriatric care manager, social worker, or elder law attorney who can help assess options based on your specific financial situation and care needs.

No one should have to choose between safety and solvency. With the right information and support, aging in place can be a dignified, affordable reality.