How to Pay for Home Health Care via Reverse Mortgage
Sometimes, seniors fall short with their preparation for their retirement. No matter how much they anticipate, there are cases when they are unable to afford paying for caregivers in Alberta, Canada for themselves.
According to Genworth’s 2017 cost of care survey, the monthly rate of a home health aide alone is more or less $4,000. As for homemaker services, you will have to spend more than $3,000 monthly. Even if seniors rely on government programs to help with the cost to some extent, receiving ongoing care may still be difficult.
However, it isn’t entirely impossible to cover the cost. Numerous payment solutions are being offered nowadays to seniors, who have problems paying for their long-term home care. One idea that seniors can think about is reverse mortgage.
What Is Reverse Mortgage?
For a senior who owns a home with a fully paid or low mortgage balance, their home equity can be used to pay for a long-term home health care through reverse mortgage. Homeowners can get the proceeds and use that to pay off their home care cost. They can even stay at home and receive home care in Alberta, Canada while receiving their reverse mortgage proceeds.
If the homeowner decides to take a reverse mortgage, they have the discretion to receive it as a lump sum, monthly deposit, line of credit, or other payment plans. Since a senior will use the reverse mortgage proceeds to cover or supplement the cost for non-medical home care in Canada, a monthly payment plan is most suitable.
The best thing about the option of using a reverse mortgage for home health care cost payment is that there is a government insurance put in place to protect the borrowers. Reverse mortgage is placed under the Home Equity Conversion Mortgage of the Department of Housing and Urban Development. The senior is guaranteed to receive their due payment, as well as other protections.
Of course, since reverse mortgage is a loan, it is expected of the homeowner to pay for it. There are also policies in place that ensures that the borrower doesn’t make a default on the payment. These policies are what lends credibility to the said loan, making it a safe option for everyone.
Using the reverse mortgage option will definitely put a senior’s mind at ease, especially those who haven’t saved enough for a home health care, or were caught unprepared. Have further questions? Royal Home Caregivers is more than happy to give you answers. You may reach us anytime at 403-463-7347.