Can Your Aging Parents Afford Long Term Care?
Millions of Americans struggle with the question of whether their elderly parents can afford long term care. Financial matters can be a sensitive topic, and when it’s time to start thinking about long-term care needs, holding an open and honest discussion about how your parents will be able to afford long term care services is crucial.
To that end, our home care team has compiled the questions below to help you get started:
- What are your parents’ assets? A good starting point is to determine approximately how much money your parents have available in cash, investments, and Social Security. This provides a basis for covering for long term care expenses.
- Do your parents anticipate the need for financial assistance? People are living longer than ever before, meaning more people are outliving the funds they’ve set aside for retirement. Ask your parents if they have sufficient funds to sustain their needs for the remainder of their lives. If not, how much support will be needed?
- Do your parents have insurance? Find out if your parents have a long term care insurance policy as well as life insurance and make sure you have a good understanding of their policies.
- Can you access their passwords and account numbers? Request account and password details, and retain a copy of this information, along with contact information for your parents’ financial adviser and attorney. This will make it a smoother process to sort out affairs when the need arises.
- Have your parents signed a power of attorney? Suggest to your parents that they designate and finalize paperwork for a power of attorney so that they know there is a responsible, trusted person to make decisions on their behalf in the case of a medical emergency.
Planning ahead for long term care is vital, and best done while your parents are independent and thriving. Understanding their finances now will help you better prepare for their future care.
At Hired Hands Homecare, providers of elder care in Walnut Creek, California and surrounding areas, we know that discussions about aging care and finances can be difficult, and we’re always on hand to help. Contact our senior care experts at (866) 940-4343 to learn more, and visit our Locations & Service Areas page to see all of the areas we serve in California.