Older Adults Want to Age in Place. Long-Term Care Insurance Makes It Easy.
You probably can relate to his scenario, I went through it, and perhaps you have as well. You're sitting at the kitchen table, listening to your aging parents express their heartfelt desire to remain in the home where they raised their family and built a lifetime of memories.
Their eyes light up as they reminisce about past celebrations and milestones within those familiar walls. However, despite their deep emotional attachment, you realize that they haven't planned for the realities of aging in place.
The house lacks the necessary modifications, and no long-term care plan is in place. This heartfelt conversation may remind you that you need to prepare now, but ensuring your parents can safely and comfortably age in the place they hold dear is another issue.
People Want to Stay at Home
As adults age, the desire to remain in their own homes, surrounded by familiar environments and memories, becomes increasingly important. According to the AARP, 77% of adults aged 50 and older wish to age in place.
Being at home is usually preferable, but the AARP survey revealed several obstacles to aging in place at home. A third of all poll participants stated they would need to modify their current residence to accommodate physical limitations, allowing them or a loved one to continue living there.
- 79% say they would need to modify bathrooms with grab bars or no-step showers.
- 71% say their home has inside and outside accessibility issues.
- 61% say they would need an emergency response system.
- 48% said they would need smart-home devices, like a voice-activated home assistant or a doorbell camera.
Indeed, the cost of caregivers is another significant concern, and many families are still surprised to learn that health insurance and Medicare only pay for short-term skilled care.
Unless a loved one has Long-Term Care Insurance, caregiving often becomes a family issue, or the loved one must attempt to pay for the care services from their income and assets. Don't assume they don't have an LTC policy; often, parents fail to tell their children they have a policy, and they want to delay using the policy benefits. Be sure you ask.
However, the practicalities of aging—such as declining health, chronic illnesses, accidents, mobility problems, dementia, and frailty—pose significant challenges that often necessitate long-term care. Yet many families don't even discuss the issue, much less plan for it.
This is how a family crisis starts.
Understanding Long-Term Care
Long-term care involves assistance with daily living activities or supervision due to cognitive impairments like dementia. Long-term care encompasses a variety of services designed to meet the medical and non-medical needs of individuals with chronic illnesses, disabilities, or other conditions that limit their ability to perform everyday activities.
These services include assistance with activities of daily living (ADLs) such as bathing, dressing, eating, and using the toilet, as well as instrumental activities of daily living (IADLs) like housekeeping, meal preparation, and managing medications.
Long-term care can be provided in various settings, including the individual's home, adult day care centers, assisted living facilities, and nursing homes. It focuses on promoting independence and quality of life while also addressing the individual's physical, emotional, and social needs.
The likelihood of you needing long-term care in your lifetime is high, and as you age, the risk increases. The U.S. Department of Health and Human Services reports that when you reach age 65, you have a 56% chance of needing long-term care services. The question is when and for how long?
Aging at Home - Is it Realistic?
Older adults typically prefer staying at home, but it requires careful planning and resources. Unfortunately, long-term care issues are not seriously discussed or planned for in advance. Many people are in denial that they would ever need help with everyday living activities and can't fathom they would ever have dementia.
People often rationalize that their current good health prevents them from ever needing long-term care in the future despite the fact that their good health means longevity, which is one of the leading causes of needing care -- just old-fashioned frailty due to old age.
Longevity is the top risk for dementia and Alzheimer's, yet denial is easier for some people than dealing with reality.
Other people tell researchers that their families will take care of them, and, in fact, some adult children have told their aging parents they will take care of them. Adult children, often daughters, make these statements out of love but are unaware of the physical, emotional, and financial demands that family caregivers must face.
Aging in Place - Questions to Consider
If your older parents (or yourself) are showing signs of declining health and mobility, be sure to ask the following questions
- Do you have any physical health conditions that might limit your mobility, such as arthritis?
- Do you have any conditions that could affect your mental function, such as Alzheimer's or another type of dementia?
- Does your home have features that could make it hard to get around safely, such as stairs, narrow doorways, or poorly lit areas?
- Would home modifications be too expensive for you to afford?
- Do you live alone?
- Do your children or other family members live more than 30 miles away?
- Do you live beyond walking distance from parks and other safe recreational areas?
- Are you responsible for all the care and maintenance of your home, including gardening and snow removal?
- Have you stopped driving?
- Do you have Long-Term Care Insurance?
Many older adults express that they prefer their adult children to be family members rather than caregivers. This desire highlights the emotional complexities and strains that caregiving can place on family relationships.
Additionally, not all homes are designed to be age and disability friendly. Significant modifications are often necessary to make a home safe for someone facing health and aging challenges. These modifications include installing grab bars, widening doorways, and ensuring easy access to essential areas, which can be both costly and time-consuming.
Fake News - "Long-Term Care Insurance Only Pays for Nursing Homes - Why Bother?"
This statement is what they call "fake news." Most Long-Term Care Insurance benefits are paid for in-home care. Yet, some people in the financial planning and insurance industries think LTC Insurance only pays for nursing homes.
Jesse Slome is the executive director of the American Association for Long-Term Care Insurance (www.aaltci.org), a consumer advocacy group. He points out that most care is delivered outside of a nursing home.
Long-Term Care Insurance benefits are mostly paid to individuals who receive benefits for qualifying care in their own home or in an assisted living facility.
In 2023, the last reporting year, a record $14.1 billion in LTC Insurance benefits went to policyholders and their families to provide the quality long-term care services they need in the setting they desire.
LTC Insurance offers a comprehensive solution covering all care levels, including in-home care, adult day care centers, assisted living, memory care, and nursing homes. With rising care costs due to increasing demand and high labor costs, LTC Insurance provides a financial safety net that protects your savings and assets.
Yes, long-term care services are expensive, and those costs are exploding nationwide. Even in-home care is costly; however, the benefits of an LTC policy can reduce the financial burden.
Home healthcare services are generally less expensive, and nursing homes are the most costly. However, the cost will depend on several factors, including where you live.
For example, the cost of home care services in Virginia Beach, Virginia, is less expensive than the cost of home care services in Lincoln, Nebraska.
The LTC NEWS Cost of Care Calculator shows comprehensive long-term care costs and projected future costs of all levels and types of care services in the top metro areas of each state.
Aging at Home Does Not Have to Burden Loved Ones
LTC Insurance alleviates the stress and burden of caregiving for families. Family members often have their own jobs and responsibilities, making it challenging to provide the level of care needed by an aging loved one.
An LTC policy typically includes case management services, helping families find appropriate care and develop care plans, reducing pressure on them to become primary caregivers. These benefits allow family members to focus on providing emotional support rather than full-time care.
With an LTC policy paying for long-term care services at home (or in any other setting) your future retirement income and your 401(k) and other saving are preserved.
Home Modifications
The cost of long-term care is substantial and continues to rise. According to the National Institute on Aging, most homes are not built to accommodate the needs of older adults, requiring significant modifications to ensure safety and accessibility. These home modifications and ongoing care costs can quickly deplete savings.
To avoid these financial and emotional strains, many Long-Term Care Insurance policies will pay for some benefits toward home modifications, ramps, chair lifts, and even medical alert systems to make it easier to remain at home.
Finding Caring Caregivers
If you are trying to help your older parents remain in their home, and they don't have Long-Term Care Insurance, it can be harder on the entire family. Just finding caregivers and facilities can be a challenge.
The LTC NEWS Caregiver Directory was designed to help family members find quality and compassionate caregivers, home health agencies, senior communities, and long-term care facilities. With a few clicks, you can quickly narrow down several options to investigate further.
Adult day Care Centers (covered by LTC Insurance) can be used in addition to in-home care for socialization and respite care for caregivers.
The directory is free to use - Find Senior Long-Term Care Services Near You.
Be Prepared to Stay at Home
Quality long-term care services can help you maintain a good quality of life despite the challenges of aging. Needing help and assistance doesn't mean your life is over; rather, it's an opportunity to ensure you continue living comfortably and safely.
Planning ahead for long-term care can make a significant difference, providing you with the resources and support needed to face aging with dignity and independence.
While there may be situations where assisted living is preferred, your home is likely where your heart is and where you want to stay as you age. Planning now, before you get older, will keep you in control of your life and where you receive the care you need as you age.
Incorporating Long-Term Care Insurance into your retirement plan now is a wise decision. It helps you avoid the crises many families face when a loved one's health declines. By planning now, you ensure you have the necessary resources and support to manage future care needs, providing peace of mind for you and your family.
The ideal time to acquire LTC Insurance is in your 40s or 50s, but affordable options are available for those in their 60s and even older, depending on health. Securing an LTC policy now ensures that you maintain control over your care as you age, providing peace of mind for both you and your family.