Create Caregiving Plan in Advance

As the number of older Americans increases, so will the number of caregivers needed to provide care. The CDC says the number of people 65 years old and older is expected to double by 2030. There will likely be 71 million people aged 65 and older when all baby boomers are at least 65 years old in 2030. 

With advances in medical science, the number of people who will require long-term health care services and supports is increasing. The U.S. Department of Health and Human Services says a person who reaches the age of 65, about half, will need some type of long-term health care service before they die. This requires advance planning.

Are you prepared for the costs and burdens that come with declining health and aging? People need long-term care services due to illness, mobility problems, dementia, or the frailty of aging. 

LTC Services are Expensive

Professional long-term health care is expensive at home or in a facility. Those costs are rising rapidly nationwide. Many people think they are covered and have little to worry about. That is not true.

Since traditional health insurance and Medicare, including supplements, will only pay a limited amount of skilled long-term care, much of the responsibility will fall on your savings or your family. Perhaps both.

Medicaid is not an answer either since it will only pay for long-term care services if you have little or no income and assets.

Family Caregivers Unprepared

Family caregivers are ill-prepared for the physical and emotional demands placed on them. It is difficult balancing the role of being a caregiver with their career and other family responsibilities. 

Care recipients usually don't feel comfortable having a loved one provide the very personal care many of us will require. Bathroom hygiene, for example, is something not shared with family!

Do you really want informal, unpaid caregivers (family members or friends) to become responsible for providing your care in the future? 

While some aspects of caregiving may be rewarding, caregivers usually become burdened as it impacts their own careers and family responsibilities. 

In addition, they are also at increased risk for negative health consequences. These may include stress, depression, difficulty maintaining a healthy lifestyle and staying current on recommended clinical preventive services.

Caregivers provide care to people who need some degree of ongoing assistance with everyday tasks on a regular or daily basis. Care recipients can live in residential or institutional settings, ranging from children to older adults, and have chronic illnesses or disabling conditions.

Many Family Members are Forced Into Caregiving for Loved Ones

Approximately 25% of U.S. adults 18 years of age and older reported providing care or assistance to a person with a long-term illness or disability in the past 30 days, according to 2009 data from CDC's state-based Behavioral Risk Factor Surveillance System. This is termed "informal or unpaid care" because it is provided by family or friends rather than by paid caregivers. 

The one-year value of this unpaid caregiver activity was estimated at $450 million dollars in 2009.

Informal or unpaid caregiving has been associated with:

• Elevated levels of depression and anxiety
• Higher use of psychoactive medications
• Worse self-reported physical health
• Compromised immune function
• Increased risk of early death
• Over half (53%) of caregivers indicate that a decline in their health compromises their ability to provide care.
• Furthermore, caregivers and their families often experience economic hardships through lost wages and additional medical expenses. In 2009, 27% of caregivers of adults reported a moderate to high degree of financial hardship as a result of caregiving.

What if You - or a Loved One - Has Limited Resources?

If you are older or have very few assets having a caregiving plan would be very helpful for you and your family. A caregiving plan will benefit the entire family if you are a caregiver for such a person. The plan should include information about:

• health conditions
• medications
• healthcare providers
• emergency contacts
• caregiver resources

Having and maintaining a care plan will help you balance your life and that of the person you are providing care for. 

The CDC offers this form which can be used https://www.cdc.gov/aging/caregiving/pdf/Complete-Care-Plan-Form-508.pdf.

Have You Considered LTC Insurance in Your Retirement Plan?

If you have not retired or recently retired and are in good health, you should seek the advice of a Long-Term Care Insurance specialist to see if LTC insurance is appropriate. These policies are very affordable, especially if you are in your 40s or 50s and still in good health. 

Premiums are based, in part, on the age you are when you get a policy and the health you have at that time. If you are older, affordable options might still be available, depending on your health. 

Short-Term policies are available in most states which are more affordable for those over 70.

Long-Term Care Insurance is a consideration that directly helps you with the financial aspect of accessing your choice of quality care without having to drain assets. But LTC Insurance is more than that.

The problem of long-term care is both a cash flow issue and a family issue. Owning an LTC policy gives you access to your choice of care services as you protect assets and give your loved ones the time to be family and not caregivers. 

Best Time to Plan? Before Retirement

If you have savings to protect, don't delay in designing a Long-Term Care Insurance plan to safeguard your income and assets from the costs and burdens of aging. Most people purchase LTC Insurance in their 50s.

Caregiving is hard. Advance planning will make it easier.