What is Home Care?

When you or a loved one are in need of some care at home, “Home Care” agencies may be your solution. Some home care is paid for by Medicare.  Some may be paid for by Medicaid.  Often though, families discover that much of home care is not covered by either Medicare or Medicaid.  So it must be paid for privately.

How can a Home Equity Line of Credit help you pay for Home Care?

When government benefits and insurance does not meet the need, a Home Equity Line of Credit could be used to pay for care.  Before you access home equity for you or a loved one’s care, consider the following:

1. Engaging a Geriatric Care Manager to help you assess your home care needs.
2. Consider how long care will be needed.
3. Take:
   the costs you must pay out of pocket (A).
   take the number of months you believe care will be needed (B).
   Multiply A and B.  Arrive at the amount of credit you would like on your Home Equity Line.
4. Double-check the need with your or your loved one’s healthcare team and your Geriatric Care Manager.

Who applies for a Home Equity Line of Credit for Home Care.

It is important the person who applies has the capacity to enter into a loan agreement.  Frequently we recognize that the person receiving home care is not able to sign legal documents.  In the lending world, that is often referred to as a person with “Diminished Capacity.”  If the person in need is of Diminished Capacity, then a guarantor or co-signer will be necessary. This is because at Second Act we want to always do the right thing.  Using your Home Equity for Home Care or Senior Living requires a plan in place with a clear strategy on how the line will be paid back.  We welcome a conversation with you on smart and safe use of your Home Equity for Home Care.  Just give us a call!