What You Need to Know About Long-Term Care Planning

While no one knows exactly what the future holds, having a loose plan can save a lot of seniors, and their families, headaches and heartaches when the time comes to make critical decisions. October is National Long-Term Care Planning Month, a month designated to encourage seniors to look at their potential long-term care needs. Not only should seniors be thinking ahead in regard to their future care needs, but they also should be communicating their desires with those closest to them. Having a plan in place not only gives seniors choice in the decision-making process, but it also gives them time to save for their long-term care needs. If you’ve been procrastinating in your long-term care planning, it’s time to start thinking about making a plan. Here’s what you need to know about long-term care planning and a few simple steps you can take today to activate your plan.

Create a Will

If you don’t already have a will, please make this your number one priority. A will is simply a legal document that states how your assets should be distributed upon your death. You may have communicated such desires to your children or beloved family members, but unless it’s legally documented, that state in which you reside will get to decide how to distribute your assets to your beneficiaries, according to its laws. Generally, a will includes instructions for how you wish your beneficiaries to receive your assets. You also name an executor, someone who will carry out the provisions of your will, and beneficiaries. You don’t necessarily need to involve a lawyer to create a will but working with a lawyer will ensure that you haven’t overlooked anything important. A lawyer can also guide you should you desire to set up a trust in addition to a will.

Designate a Power of Attorney

Many seniors make the mistake of not designating a power of attorney (POA) for their health and finances. Some fear that once they name a POA, they’ll no longer have any say over their health and finances. This is not the case at all. A POA is a fancy term that gives the named person legal authority to make decisions for you when you are incapacitated. If you can speak for yourself and have good judgment, then your POA has no power over you. Designating a POA is critical for seniors may have dementia in their future. Appointing someone now, while the senior is of sound mind, is much easier to do than waiting until memory loss has set in. When you do decide on your POA, it’s important that you have a conversation with them about your preferences, should something happen. You can also document these decisions in your will or trust, but sometimes a critical decision needs to be made before your POA has time to access your will.

Long-Term Care Insurance

Although long-term care insurance has been around for well over a few decades, its benefits have only just begun to make waves in the lives of seniors. Few Americans actually carry a long-term care insurance policy. According to AARP, the out of pocket cost for paid long-term care is approximately $140,000. If you’re in your 50s or 60s, now is the time to shop around for long-term care insurance, before premiums rise. When it comes to long-term care insurance, you need to understand what the policy covers and what qualifications you need to meet in order to receive such coverage. Most policies will have a waiting period of about three months before insurance kicks in. While long-term care insurance can help pay the bills, there are other factors that could help off-set the cost of care. You also need to evaluate your individual risk for needing long-term care. Do you live alone and have a family history of dementia? Do your children live nearby and are they available to help you as you age? Can you tap into home equity or other financial assets instead of purchasing long-term care insurance? Do your research before jumping into a long-term care insurance policy.

Medicare and Medicaid

Many seniors avoid making any long-term care plans because they assume that the government will take care of them. In reality, relying on Medicare or Medicaid is not an effective long-term care plan. Medicare is a federally funded health insurance program for adults over the age of 65. While it does cover inpatient hospital stays, skilled nursing care in a facility, hospice care, home health care, certain doctors’ services, medical supplies and preventative services, its coverage is limited. The government puts time limits on the amount of care you receive from each service. What happens when you need longer to recuperate in a skilled nursing facility, but you’ve used all your Medicare days? You’re now responsible to cover the cost of such care. Medicaid is health coverage for low-income people of every age. Ethically, Medicaid should only be utilized by those who truly need it and have no other financial assets to support their care needs. Understanding what Medicare covers and what qualifies someone for Medicaid will help you secure your long-term care plan.

Speaking of long-term care plans, where do you envision spending your golden years? If you goal is to remain in the comfort of your own home, then Visiting Angels Punta Gorda is here to help you achieve your goal. Our compassionate caregivers come to you to help with laundry, light housekeeping, bathing, meal planning and preparation, and more. You don’t have to leave your home when you need additional help as you grow older, we are here for you. To learn more about our in-home care services and how we can become a part of your long-term care plans, please give us a call at 941-347-8288 Punta Gorda or 239-226-1620 Cape Coral.