Long-term care insurance and Veterans' Administration benefits

If you’re developing a care plan and budget for a loved one, it’s important to know if there are outside options available to help pay for the cost of hiring a caregiver. According to a 2021 Genworth Financial study, the average hourly cost for a family needing non-medical in-home senior care is approximately $26/hour, which is a large investment for any family to undertake. However, seniors that have access to a long-term care insurance policy or are covered by Veterans’ Administration (VA) programs can have their care expenses dramatically reduced.

The VA offers an Aid & Attendance benefit for war veterans aged 65 and older. The program helps cover some of the cost of long-term care services for veterans and their spouses. The amount of aid depends on the person receiving care:

Surviving spouse of a veteran – $1,318/month.
Single veteran – $2,050/month.
Married veteran – $2,431/month.

Similarly, if a long-term care insurance policy is in place, benefits are paid out by the insurance company to help offset the costs associated with hiring a senior caregiver. “Many insurance carriers offer long-term care insurance, so it may be a good idea to contact the company that handles your current life insurance policy first,” says Desiree Leung, Head of Operations of Care.com HomePay. “The reason is that many life insurance companies can roll your existing coverage over to a long-term care plan.”

With long-term care insurance, the company will set a daily rate for the amount of coverage someone can expect to receive and the family will cover the additional expenses. Just be aware that the amount of benefits someone can receive varies on a case-by-case basis and on a company-by-company basis.

No matter which of these care options your loved one may be eligible for, keep in mind that expense documentation is almost always required in order for care costs to be reimbursed. HomePay is set up to provide all the information you’ll need to comply so please reach out to us (888) 273-3356 and we’ll be happy to provide a free consultation on this, or any other household employment topic.

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by Tom Breedlove

Tom has been a member of the HomePay team for the last 15 years. He has worn many hats during his time with us, but currently works with thousands of staffing professionals, care managers, accountants, trustees, financial advisors and attorneys that have clients needing household employment support.

Co-author of The Household Employer’s Financial, Legal & HR Guide, Tom leads all education and outreach efforts on this complex topic. His work has helped HomePay become the featured expert on dozens of TV and radio shows, as well as countless business, consumer and trade publications. He also has conducted CPE lectures for more than a dozen professional organizations, including AICPA, NAEPC, AADMM, CPAacademy and Alliance of Comprehensive Planners.

Tom holds a BBA in finance with a minor in accounting from the University of Texas. Throughout his career, he’s been an active volunteer and speaker in the financial, marketing and care industries. If you’re ever at a conference where household employment is on the schedule, chances are, you’ll see Tom at the event.