Long-Term Care - Prepare Today For What You Might Need Tomorrow

We could spout the statistics about the growing need for nursing home care and outliving your resources, but you probably get enough of that other places. Besides, long-term care isn‘t just about nursing homes. It's about getting the assistance you or someone you care for needs at home as well. Furthermore, you know as well as we do that people seem to be living longer than ever, and health care costs are climbing higher every year.

You could live to 100 and never need long-term care, you could end up needing assistance in daily living long before retirement, or you could fit somewhere in between. Maybe your knees go. Or your eyes. Or you become a little too forgetful. No one likes to think about it, but none of us is built to live forever, except the Million Dollar Man, and even he needed replacement parts (before his show was cancelled altogether). We don't want you to freak out over big numbers and worst-case scenarios. We merely want you to become informed about long-term care insurance--its benefits, costs and options--so you are better prepared to make a decision about it for yourself and those you love.

Why You Want to Be PreparedLong-term care insurance usually covers the costs for care that isn't picked up by regular health insurance or Medicare, the government health program for people over age 65. If you need assistance to properly feed, clothe or bathe yourself, long-term care insurance could pay the bill, depending on the type and amount of coverage you buy. If you plan on growing old, you could be a candidate for long-term care insurance, especially if you're living a middle-income or upper-income lifestyle. Because it's expensive, long-term care insurance isn't typically a product lower-income individuals are able to buy.

If you're middle-class, you're likely to be hit the hardest by the high cost of long-term care, because you're likely to spend most of your assets if you required extended long-term assistance. You may not qualify for Medicaid assistance, yet paying your own bills for long-term care could break you.

If you've got a lot of dough (assets of $1 million or more), you probably can pay for your own long-term care, although you might want insurance anyway to preserve your estate for your kids or grandkids (or that favorite charity if the kids don't deserve it). This is also the reason some people buy long-term care insurance for their parents--to preserve the inheritance they might receive one day.

Insurance Isn't Your Only Long-term OptionLong-term care insurance can be a pretty pricey proposition. You will likely pay dearly over several years for coverage you may or may not ever use. That's the gist of insurance, after all. If don't think there's any way that you‘ll be able to afford the premiums, all is not lost. Perhaps some of these options will work in your particular situation to help you fund your long term care needs:
Save enough money during working years to pay for your care (and probably forgo the next century of vacations).

Hope you remain healthy enough so as not to require outside care (if that's a risk you‘re willing to take).

Ask family and friends to help pay for care (not easy but feasible).
Pay to live in a continuing care community, which may include some personal assistance along with room and board.

Look for other sources of funding such as life insurance riders or reverse mortgages.

Taking Care Of Parents - Begin The Conversation And Keep It Going

Most of us would just as soon have our teeth drilled (without novocain) than talk to our aging parents about the possibility that their health, memory or both may fade. Just as a trip to the dental hygienist is worth it to preserve your teeth, so a conversation with mom and/or pop about aging is worth it to help preserve a future you both can handle. And much like avoiding a trip to the dentist chair, the longer you wait to talk with your folks about the future, the fewer choices you may have down the line and the more costly it may be to ensure they get the care they need.

As long as your parents are still capable of making decisions, your role is merely to help them make those decisions. Just try telling them what to do if you don't believe us. How you approach the situation may have a huge effect on whether your parents are willing to accept your help. Consider these tips:

Listen to your parents and ask questions. Avoid telling them what to do, no matter how tempting it can be.

Be patient and give your parents time to think over their alternatives (that's why it's best to get the conversation going earlier rather than later). Major decisions won't get made during one casual phone call, so don't expect quick responses to your questions and don't mistake indecision for lack of interest.

It's alright if you don't know what you're doing. Procrastination is popular for a reason, you know! Seriously, your willingness to assist your parents is a big step. Perhaps you know friends or co-workers who are going through the same thing. Dare to ask for help.
Keep your sense of humor handy at all times.

If you haven't done so already, talk to your parents about these things, keeping in mind that a few bullet points from us won‘t make the awkwardness go away:
Your parents‘ wishes if their health fails.

How they are currently situated financially and what financial considerations much be addressed for the future.

Their health care and medical insurance needs.
Whether they want to assign you or someone else the ability to make decisions in the event that they cannot.

Be Prepared If They Resist Your AttemptsIf you think it‘s tough to talk about this stuff with your parents, just think how they feel. We‘ll spare you the dental images, but they may resist your attempts to talk about things like their money, their health and their potential need for assistance with either or both. Counter your parents‘ brush off with a heartfelt argument along these lines: Should anything happen to your parents, the reality of managing their finances and health care may likely fall to you and/or your siblings. Since you want to respect their needs and wishes, it would be helpful to you if they would be willing to talk about it now. If you‘re lucky, they will cooperate and you can all be convinced you‘re doing each other a favor, because that‘s what it is.

The information we‘ve got in this topic about taking care of your parents isn‘t comprehensive by any stretch. But it may help you shape some questions and seek more answers as you prepare for the possibilities that lay ahead.