Key Tips to Consider To Plan for the Consequences of Aging
The "sandwich generation" are people caught between caring for their own children and caring for parents who need extended care. The consequences on family caregivers impact the caregiver's career, family, and even health.
Family caregivers are often surprised when they get forced into the job of caring for a parent or an in-law. This is not because they don't love their family; it is because most people think long-term health care is covered by Medicare, supplements, or traditional health insurance. When they discover that their loved one must pay for care themselves, it creates a family crisis.
When an older adult begins to decline and needs help with everyday living activities or requires supervision due to dementia, families often scramble to see who can become the family caregiver.
Family Caregiving Can Be Overwhelming
Caring for aging parents can be overwhelming and often creates conflicts between siblings. In addition, since most family caregivers are untrained, the quality of the care might be less than desired.
Are you prepared to deal with your future long-term care needs? There are several key tips to consider before retirement.
Clark Howard is a well-known radio host, podcaster, and consumer expert. Millions across the country listened to his nationally syndicated Clark Howard Show and now follow his advice online. An article on his website discusses the need to plan for the impact long-term care will have on a family, especially when you have to take care of multiple generations – otherwise known as the sandwich generation.
The sandwich generation is used when you must take care of your parents and children. This situation leads to significant life changes for young families. Clark says if you're part of the "sandwich generation" caught between these obligations, he offers some important advice.
Consider an Affordable Long-Term Care Policy
If you are between the ages of 50 to 60, this is the prime age to buy Long-Term Care (LTC) Insurance. Younger people today understand the need for planning, but most people get coverage in their 50s. When you are older, you often have several preexisting health problems that may prevent you from obtaining coverage since LTC Insurance is medically underwritten.
What is Underwriting? How Does Current Health Impact Ability to Obtain Long-Term Care Insurance?
Long-Term Care Insurance provides more than just benefits to pay for care in a nursing home. Most LTC Insurance claims are paid for in-home care. Policies also cover adult day care centers, assisted living facilities, memory care facilities in addition to nursing home care.
What Are The Components Of A Long-Term Care Insurance Policy?
Long-Term Health Care Costs Increasing
According to the LTC NEWS Cost of Care Calculator, the cost of paid care services can run over $100,000 a year for a nursing home. In-home care and other types of long-term care services are also expensive and can easily drain assets and adversely impact lifestyle and legacy.
Shopping for Long-Term Care Insurance can be simplified by seeking the help of an independent LTC specialist who can shop the top insurance companies and provide you with accurate quotes along with their professional recommendations. LTC NEWS can help find a specialist by clicking here.
Best Time to Purchase is in Your 50s
When shopping for Long-Term Care Insurance, some companies still offer unlimited lifetime benefits. If you have a substantial amount of assets, you might want to consider an unlimited lifetime benefit. Many companies offer shared spousal benefits, which will give the couple a large amount of benefits that can be shared between the two spouses. Inflation benefits are essential since the cost of care is exploding nationwide.
Long-Term Care Insurance offers many "riders" that add benefits to a policy, like inflation benefits.
What Are Riders In Long-Term Care Insurance?
Partnership Long-Term Care Insurance policies are available in most states. Partnership policies provide dollar-for-dollar asset protection. Those policies must have inflation benefits in order to meet federal guidelines.
What Is the Partnership Program in Long-Term Care Insurance?
Remember, there are several types of inflation benefits available. Be sure you select an inflation option where the benefits increase each year automatically, but your premium does not increase to match the higher benefit level.
Wills and Powers-of-Attorney
Clark says that if you don't have a will, the state will decide who raises your kids. In the absence of any written direction from you, the court will decide what happens.
Wills are generally not too complicated or too expensive to put together unless you own a business or have a blended family.
Clark says a durable power of attorney (DPA) is a document that allows someone that you name to make financial/legal decisions on your behalf. As you get older, this will become even more important.
Included is a power-of-attorney for health care. You get to decide who can make these decisions, and you can give them directives as to your wishes about how your life to be prolonged if there is little hope for survival.
Don't Ignore the Consequences of Aging
Many families ignore planning for the financial costs and burdens of aging despite experts like Clark Howard suggesting otherwise. You will see changes in your health, body, and mind in the decades ahead. These changes will often require you to need help with daily activities that you think are routine today, but you will become dependent on others to help you with those in the future.
In addition, as we get older, we also face a much higher risk of cognitive decline. One in five women aged 40 and older and one in ten men aged 40 and older will suffer from some type of dementia in their lifetime. People with dementia will need supervisory care to keep them safe.
Don't place the future responsibility of caregiving on your family or your finances. Remember, Long-Term Care Insurance is medically underwritten, so you can't wait until you have major changes in your health. Policies are very affordable as well when you purchase a policy in your 40 or 50s.