For families managing the costs of serious illness at home, covering essential expenses can become overwhelming. Medical equipment like hospital beds, oxygen systems, and mobility aids are critical for maintaining quality of life, but these items are often costly, with expenses adding up quickly. This is where viatical settlements can help cover home care equipment costs. By selling a life insurance policy, a policyholder facing a terminal illness can receive an immediate cash payout. This option provides flexibility and financial relief, allowing families to purchase necessary equipment and secure ongoing in-home care services.
The Expanding U.S. Home Healthcare Market
The U.S. home healthcare market is projected to grow significantly, expected to reach $253.4 billion by 2030 at an annual growth rate of 7.48% 1. This increase is largely driven by the aging population and the growing prevalence of chronic conditions like diabetes, cancer, and cardiovascular diseases, which have contributed to higher demand for in-home medical services and equipment. Patients and families are also increasingly seeking the comfort and reduced costs associated with home care, especially as technology enables better remote monitoring and treatment options.
Essential Home Care Equipment and Associated Costs
Home healthcare requires various types of durable medical equipment (DME), which may be costly but are crucial for providing safety and comfort at home. Key categories of equipment include:
- Personal Mobility Devices: Wheelchairs (both manual and electric), scooters, walkers, rollators, and door openers
- Bathroom Safety and Medical Furniture: Commodes, toilet aids, and adjustable beds
- Monitoring and Therapeutic Devices: Blood glucose monitors, infusion pumps, nebulizers, CPAP machines, suction pumps, and traction equipment
- Other Essential Supplies: Ostomy bags, wound care products, diabetic supplies, urinary and incontinence products, orthopedic braces, and muscle stimulators
Costs for in-home care also vary considerably by location. For example, in Louisiana, the median hourly cost for home care is approximately $17, translating to about $3,200 per month, while in Alaska, where costs are higher, hourly rates reach around $28, or roughly $5,300 per month 2. Such regional differences can influence the affordability and accessibility of home healthcare, highlighting the importance of alternative funding sources for families seeking in-home support.
How Viatical Settlements Can Support Home-Based Care
Viatical settlements offer families the flexibility to cover immediate needs without restrictions, including durable medical equipment and in-home care services. Settlement proceeds are generally tax-free for qualifying individuals, allowing funds to be fully directed toward these essential expenses. By using viatical settlements, families can cover one-time equipment costs, such as hospital beds or oxygen systems, and meet ongoing caregiving needs that help patients stay comfortably at home.
Leveraging Viatical Settlements for Long-Term Financial Relief
With individual home healthcare costs, such as durable medical equipment and in-home care services, continuing to rise, viatical settlements offer an effective financial solution to help families manage these essential expenses. This option allows families to access the necessary funds to maintain the quality of life for loved ones facing terminal illness, helping them stay at home where they feel most comfortable while reducing the financial strain of home care.
To find out if you are likely to qualify to access cash from your life insurance, please call us today at 800-973-8258. We will help you learn if a viatical settlement is an option for you.
- Grand View Research. U.S. Home Healthcare Market Size & Share Report, 2030 (U.S. Home Healthcare Market Size & Share Report, 2030 (grandviewresearch.com))
- Consumer Affairs. Average Cost of In-Home Care 2024 (Average Cost of In-Home Care 2024: Per Month & Per Hour | ConsumerAffairs®)