As our parents continue aging, there is a change in the role of who is taking care of whom. They become more senile and financially dependent on you to take care of their needs. Eventually, all our parents do age, and failing to prepare for this will leave you and your whole family at a disadvantage. This is why it's important to work with insurance and financial professionals with a wealth of experience planning for expenses associated with aging.
NAIFA specializes in this and has financial advisors willing to work with you and your family to plan your finances so that you can comfortably give your aging parents the care they need. We have discussed the importance of, and some of the long-term care costs and strategies for paying them.
Importance of Preparing as a Family for Long-Term Care Cost
Planning for the long-term care costs of our aging parents is beneficial for 3 main reasons:
- To ensure they remain in good health and receive proper healthcare.
- It ensures they remain independent and can take care of themselves for even longer.
- It safeguards both your family's and aging parents' financial security.
Common Long-Term Care Costs
Home Health Care
Home health care involves the services of a medical practitioner or physician, working round the clock or coming in on a part-time basis to assist with the medical needs of the aging parent. This strategy may require you to live with your parents or visit regularly, especially if the skilled nurse doesn't live on-site.
A facility to cater to aging parents with increased medical needs, who require constant medical attention now and then. Nursing homes also provide the ideal environment for the aged who need assistance with their everyday activities.
Facilities that accord your aging parents a private living environment but with support services like health care, meals, and transportation.
How to Pay for Long-Term Care Costs
Taking Up Long-Term Care Insurance
For care that is not covered by typical health insurance or Medicaid, this policy will help you pay for any long-term care services should you require any.
A type of mortgage arrangement for the elderly that involves giving up equity in your home so that you can take a loan to supplement retirement income. These loans do not require the borrower to make monthly repayments.
Life Insurance Cash Value
This feature is offered on some insurance policies and it allows one to convert life insurance policies into revenue streams to supplement long-term care costs.
The key to achieving financial security for you, your family, and your aging parents lies in proper planning today. Visit NAIFA for professional assistance in planning for long-term care costs.