Assessing and Planning for Long-Term Care Needs: Knowing Your Options

Assessing and Planning for Long Term Care

Courtesy of Pixabay.com

The high cost of long-term care represents a serious threat to individuals as they grow older. It’s a problem that’s staring many baby boomers right in the face. The generation born between 1946 and 1964 is rapidly aging and many will need assisted living, nursing home and other forms of care.

Considering the costs involved, it’s vital you determine how likely it is that you or a loved one will require long-term care based on factors which can impact your health. It’s even more important to begin planning how you’ll fund the expense of long-term care. Taking action sooner rather than later can make a big difference in your health, lifestyle and financial situation.

Planning

The choices you make today can have a tremendous impact on your life 20 or 30 years from now. If your doctor has advised you to get more exercise and watch what you eat, following her advice can markedly improve your health and reduce the likelihood you’ll need long-term care. If your job is highly stressful, taking steps to deal with it, perhaps through exercise, yoga and meditation, may represent an important and positive lifestyle change. Anything that reduces your risk of developing cardiovascular disease, obesity, diabetes, cancer and other serious health care risks will likely help you avoid needing long-term care in the coming years.

If Alzheimer’s disease is common in your family or if there’s a history of heart disease or cancer in your genetic background, it’s probably in your best interest to begin planning ahead for long-term care. There are more options available these days, such as assisted living, home health services, adult day care, independent living and hospice care, and many ways you can prepare for assuming those care costs.

Paying

There are several factors to consider when it comes to paying for long-term care. If you’re in your 50s, consider taking out a long-term care policy (some financial planners advise doing this earlier). Or, if your employer has a health savings account (HSA) option, you can make contributions that are fully tax-deductible and use the earnings later to help fund long-term care. An HSA, unlike a flexible spending account, rolls over from year to year and its growth is tax-deferred. It is a savings account specifically designed to help you pay for medical expenses.

Many people use a reverse mortgage to free up money for long-term care. A reverse mortgage allows you to borrow against the value you’ve accumulated in your home, and your lender makes payments to you computed based on a percentage on your home equity. Credit requirements are modest, and you can remain in the home even if your debt exceeds the value of your home. Be aware of the pros and cons of reverse mortgages. For example, your debt will increase while your equity goes down. The equity that would become part of your estate will decrease as you receive payments, and you are not the owner of your home.

A life insurance policy that generates cash value can also provide you with a funding source. You can sell a policy to generate revenue for medical expenses, “surrender” it to your insurer for a cash settlement, or make advance use of your death benefit (any amount used will count against your beneficiaries after your death).

Learning your care and payment options early and preparing for long-term care is highly recommended by financial advisers. That means it’s important to assess your needs, financial situation and consider how you might fund long-term care.

Author

June is the co-creator of Rise Up for Caregivers, which offers support for family members and friends who have taken on the responsibility of caring for their loved ones. She is author of the upcoming book, The Complete Guide to Caregiving: A Daily Companion for New Senior Caregivers.

Independent Living vs. Assisted Living.
Which is right for my loved one?

As our parents or elderly loved ones age, they have numerous options when looking for the perfect place to spend their golden years. Of course, many remain in their homes. Some are looking for an easier way of life, free from the daily chores that homeownership requires, while others seek out the company of people their own age, with opportunities for socializing and daily activities. Still others require assistance with daily living, such as managing medications, dressing and bathing.

If your loved one can still do everything for themselves and would like to live among peers and enjoy scheduled activities, independent living communities – also called retirement living – are an excellent option. They offer a safe, secure and social environment for active, independent seniors.

Seniors in independent housing may live in an apartment, a small home, or a cottage. These communities usually have on-site staff members that provide a small amount of supervision and offer a “maintenance-free” living option, often providing housekeeping, laundry and dining services.

Independent living is perfect for people who:
• Want to maintain their independence.
• Want to rid themselves of the burden of cooking, cleaning and maintaining a home.
• Want more social interaction than living at home.
• Like the security of being around other people and getting some supervision from the staff.

If your loved one is still able to move about freely and is seeking a certain amount of independence, but needs help with some daily activities such as bathing, preparing meals, taking medication, or dressing themselves, an assisted living community may make sense. Residents of an assisted living community live in their own apartment and are able to come and go as they please, while receiving assistance as needed. They can dine with others in a dining room or make their own meals. Quality senior care living communities offer a variety of daily activities to choose from. At an assisted living community, your loved one will still have independence while getting the care and services they need to lead a fulfilling life.

An assisted living facility may also be able to help if your loved one still has certain cognitive abilities, but is beginning to show signs of dementia that could result in isolation, frustration, or forgetting critical tasks such as taking medication. Communities that have “memory care neighborhoods” have caregivers who receive specialized training in memory care along with added security measures to manage residents’ safety. Memory care programs can also include brain fitness exercises, memory-building practices, and specialized therapy for residents living with dementia. If a resident begins to show signs of greater physical needs, the staff will begin to talk to the family about making the transition to a skilled nursing community.

In general, assisted living communities:
• Can provide direct assistance with everyday tasks, like bathing, dressing and meals.
• Have trained staff available and monitoring 24 hours a day.
• Help residents maintain their dignity while aging.
• May have specialized units for residents with Alzheimer’s or dementia.
• Can help with transportation to doctor appointments.
• Often have busy activity calendars to keep residents engaged with other residents.

If you want to ensure your loved one can stay in the same community as their needs change, look into a Continuing Care Retirement Community (CCRC). CCRCs allow people to remain in the same familiar and comforting environment even if their care needs change. If you’re looking for one community that you can call home even as your health changes, consider a CCRC.

About the Author:
David has over 20 years’ experience as a writer and editor. Senior issues have long been his passion, and in addition to past experience writing about maintaining a healthy outlook throughout every phase of life, he has volunteered his time and skills to such organizations as Senior Services of King County in Seattle. He is one of the many expert authors who is currently writing on behalf of Emeritus assisted living communities.