Are You Financially Prepared For A Family Health Crisis?

Americans live longer, which means more time with the grandchildren, more time to travel to those places you didn’t see when you were younger, and more time to devote to leaving your mark on the world.

However, a longer life expectancy also comes with problems.

At least 70 percent of Americans will eventually watch as an aging loved one’s life is taken over by a growing list of impairments that could mean there’s a need for long-term care. And many family members will be financially and emotionally unprepared to decide what’s best for that person they care about so much.

“Too many people wait until they are in the middle of a crisis before they start trying to figure out how the world of long-term care works,” says Chris Orestis, Executive Vice President of GWG Life and author of the books “Help on the Way” and “A Survival Guide to Aging.”

That’s why it’s essential to have a game plan mapped out ahead of time, Orestis says, and there are key things people need to consider. Those include:

• Can you recognize the need for care? The first step in providing long-term care is identifying that a loved one needs the care. “Sometimes this can sneak up on you slowly, or it can happen overnight,” Orestis says. Some of the telltale signs include cognitive impairment, such as forgetfulness or confusion; a house that is not as tidy or organized as it once was, or has objects in odd places; and physical deterioration, such as marked weakness, loss of strength and stamina, difficulty balancing, or drastic weight loss.
• Do you know what the right kind of care is? There are four types of long-term care. Home health care allows someone to remain in their home while receiving care from licensed or unlicensed workers and designated family members. Assisted living is housing for someone unable to live independently but who needs mid-level custodial care, medication support, lifestyle activities, transportation, and meals. Nursing homes are for those who need higher-level skilled care. Finally, hospice care is for people in the final six months of life.
• Are you prepared to pay for it? The cost of long-term care can devastate a family’s finances, Orestis says. The annual cost of nursing home care, for example, is more than $80,000. Generally, there are three options for paying for long-term care: tapping into retirement savings, buying long-term care insurance, or relying on Medicaid and Medicare. However, many people remain uncertain about the last option and often wonder, “does medicare provide in home care, assisted living, nursing home care, or hospice care?” While it may cover certain aspects of these services, coverage is typically limited to specific conditions and durations. Understanding the full scope of Medicare’s coverage is essential when planning for long-term care expenses.

“Most seniors don’t want to burden their families, and yet too often families are unprepared for how long-term care will impact them,” Orestis says. “That’s why it’s important to plan for that day and not wait until you’re in a crisis.”