Long-Term Care Changes Everyone and Everything

Have you considered the impact long-term health care would have on your family and finances? The need for long-term health care is an inevitable part of life that can drain a family both emotionally and financially. LTC Insurance can make getting older easier on family and finances.
Updated: February 7th, 2024
James Kelly

Contributor

James Kelly

The demographic shift in the United States towards an older population is undeniable. According to the U.S. Census Bureau, the number of individuals aged 65 and over is projected to reach 98 million by 2060, nearly double the 54 million reported in 2020. While positive in terms of increased lifespans, this trend presents significant challenges for families and finances. 

Robert E. Moffit, Ph.D., writes on the Heritage Foundation website that the population shift in age is significant. 

America is in the midst of an unprecedented demographic revolution. We are living longer, and our life expectancy is projected to increase in the 21st century.

American families face physical, emotional, and financial challenges when spouses or parents need long-term care services. With people living longer and medical advancements, more families must confront the costs and burdens of aging.

Over the past twenty years, changes in health and body are evident, highlighting the significance of aging. Looking ahead, it's crucial to consider how health, body, and mind will continue to evolve in the coming decades.

Government Solutions? 

Many people mistakenly believe that government programs offer comprehensive solutions for long-term care needs. While health insurance, including Medicare and supplements, covers some skilled care, most long-term care involves assistance with daily activities or supervision due to cognitive decline. Only Long-Term Care Insurance covers these custodial care services, except for Medicaid, which requires individuals to have minimal income and assets to qualify.

What Is Long-Term Care Insurance? What Does It Cover?

Another program for long-term care is the Partnership Program, which is available in most states. Partnership Long-Term Care Insurance, authorized under federal law, provides additional asset protection, allowing policyholders to preserve their assets while receiving benefits. 

What Is the Partnership Program in Long-Term Care Insurance?

Moreover, qualified Long-Term Care Insurance policies may offer federal and state tax incentives, making them a valuable financial planning tool for addressing long-term care needs.

More Than Just Worry About Money

Long-term care planning extends far beyond financial concerns; it encompasses ensuring access to a variety of high-quality care options and alleviating the burden placed on untrained and unpaid family caregivers. While financial preparations are crucial for covering the costs associated with long-term care services, such as nursing home care, assisted living facilities, or in-home care, it's equally important to consider the available quality and range of care.

Choosing the right long-term care solution involves evaluating factors such as the level of care needed, personal preferences, and the availability of suitable facilities or caregivers. This may include exploring options for in-home care services, allowing individuals to receive assistance with daily activities while remaining in their homes. 

Alternatively, assisted living facilities or nursing homes may be preferable for those requiring round-the-clock supervision or specialized medical care.

Moreover, long-term care planning strives to reduce the strain placed on family members who often become caregivers by default. Family caregivers, typically untrained and unpaid, bear a significant emotional, physical, and financial burden when providing care for their loved ones. 

Long-term care planning seeks to alleviate this burden by ensuring that individuals have access to professional care services, allowing family members to maintain their own well-being and quality of life while still providing support and companionship to their loved ones. 

Often, families fail to think about the consequences of future long-term care. By proactively addressing long-term care needs, families can navigate the challenges of aging with greater ease and peace of mind, knowing that their loved ones are receiving the care and support they deserve.

Families Not Prepared for Parent's Long-Term Care

Despite ample research indicating the probability of requiring long-term care and the substantial costs involved, many individuals fail to plan ahead until it's too late. Unfortunately, the ramifications extend beyond personal finances; they also impact families, particularly adult children who may find themselves thrust into caregiver roles or tasked with managing paid services without adequate preparation. Without a proactive approach to long-term care planning, families are left vulnerable to both financial strain and emotional turmoil.

The absence of a comprehensive plan for future long-term care poses significant challenges for both individuals and their families. 

Americans are Getting Older

Every day, approximately 10,000 baby boomers celebrate their 65th birthday, marking a significant milestone in their journey into retirement. With this aging population comes a growing awareness of the impact of longevity on retirement planning. According to the U.S. Department of Health and Human Services, over half of individuals aged 65 and older will eventually require long-term care services. Despite this inevitability, many individuals fail to adequately prepare for the financial and emotional burdens associated with long-term care.

The need for long-term care will either happen or not, but when it does, the consequences are life-changing and changes everything.

The aging demographic presents a pressing need for proactive retirement planning strategies. Failure to address these factors can leave individuals and their families vulnerable to significant emotional and financial strain when the need for long-term care arises unexpectedly.

Longevity and the likelihood of requiring long-term care underscore the importance of incorporating comprehensive planning measures into retirement strategies. By acknowledging the inevitability of aging-related needs and taking proactive steps to address them, individuals can better safeguard their financial security and alleviate the emotional burden on their families. Moreover, prioritizing long-term care planning empowers individuals to make informed decisions about their future care needs, ensuring they receive quality care while preserving their financial resources for other retirement goals.

Long-Term Care Leads to Family Crisis

When the need for long-term care approaches the crisis level, several family members may be pushed into participation, whether they are ready or not, said Chris Orestis, senior health care advocate and CEO of Life Care Funding.

In many situations the need for care will creep up on a family. Suddenly, people realize they have assumed duties that take up more and more of their time, and take a toll on their lives.

Roles Family Members Take with No Advance Planning

Over the years, he said, he has seen these family members gravitate naturally to roles that fall into several stereotypes.

• Caretaker – This person provides care for the loved one at home and, without realizing it, becomes a full-time caregiver. Usually, this is a spouse or an adult child, most often a daughter.

• Bookkeeper – This person focuses on the financial aspects, determining what assets or insurance policies are available to help with care costs.

• Chauffeur – This family member drives the loved one to appointments, runs errands, makes grocery runs, and eventually may drive the aging loved one to tour assisted-living facilities.

• Guardian – This family member takes on such roles as the power of attorney or trustee, assuming the family's legal responsibilities.

• Denier – This person can't accept or admit that the loved one, or they themselves, need care.

• Know-It-All – Most annoying of all, this family member constantly questions decisions or lobs suggestions from the backbencher but isn't near the situation or involved hands-on.

No Advance Plan Leads to Family Resentment

With such a lineup, it's easy for resentments to build, Orestis said, but that needs to be avoided because the focus should be on the aging loved one and ease the transition if a decision is made to move into a nursing home or assisted living facility.

Eventually, once it's clear that professional long-term care is needed and a plan is in place to make it happen, a conversation needs to occur with the loved one, who may be apprehensive or even resistant, Orestis said.

The conversation should be conducted with compassion and delicacy, he says. Emphasize that this move will not only improve their health and safety but also provide numerous opportunities for social activities, games, art, entertainment, and great food.

The key is for the family to come together. Look for the signs that care is needed, formulate a plan, communicate effectively with your loved ones, and change the perspective about long-term care from a negative to a safe, healthy, and enriching experience in the continuing journey of life.

You Can't Avoid the Risk of Long-Term Care

There is no way to avoid aging or the risk of needing long-term care in the future. However, you can take charge of your future retirement and help prevent the stress and burden that your aging and changes in health will have on those you love.

Don't be in denial of what happens as we get older. People require long-term care due to an illness, accident, or the impact of aging. You may enjoy a healthy lifestyle; however, you will live longer, placing you at a higher risk of frailty and cognitive decline. 

Many individuals believe that if there is no family history of long-term care needs, they are unlikely to require such care themselves. However, advancements in medical science and increased longevity have altered this perception. While older generations may not have enjoyed the benefits of modern medical innovations, today's longer lifespans contribute to a heightened risk of needing long-term care. It is essential to recognize that the absence of a family history of long-term care needs does not guarantee immunity from requiring assistance with daily living activities or supervision due to dementia later in life.

Despite the misconception that long-term care preparation is unnecessary for those without a family history of such needs, proactive planning is both straightforward and affordable. While family history can provide valuable insights into potential health risks, it is just one factor to consider in long-term care planning. 

Regardless of familial predispositions, anyone may encounter health challenges that necessitate long-term care services in their lifetime. Therefore, taking proactive steps to prepare for potential future care needs is prudent for individuals of all backgrounds and family histories.

Be sure to research an affordable Long-Term Care policy before you retire. You will have access to your choice of quality care in your home or in a facility. Just as important, our family will have the time to be family.

It is true; long-term care changes every aspect of your life. Proper preparation makes those changes easier for everyone.

There are several good options to consider when planning for the costs and burdens of aging. But while Long-Term Care Insurance is highly regulated, there are differences between policies, and premiums can vary dramatically between insurance companies for the same benefits. An experienced Long-Term Care Insurance specialist will help you navigate the various options and match your age, health, and family history with the best coverage at the best value. 

Most people obtain their LTC Insurance policy in their 40s or 50s, but if you are older, you can still find affordable options in your 60s and beyond, depending on your health.

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