CONSEQUENCES
FAILING TO PLAN
Failure
to consider the consequences of needing
long-term care, risks the emotional
and physical health of your family
and the integrity of your retirement
portfolio.
There
are basically four choices to consider
1.
You can depend on Family and/or Friends
-
Providing
care to chronically ill people makes
healthy people chronically ill
-
Long-term
care doesn't bring families together,
it tears them apart
-
Do
you realize that your children may
have little choice but to care for
you?
-
Will
each of them provide care equally?
-
Have
you ever discussed what role you
expect them to perform?
2.
You can depend on Medicaid
Medicaid is the Government's program
for those in financial crises, those
with extremely limited or no resources.
It is similar to Medicare with one important
difference:
- Medicaid
is a valuable program. It however
pays primarily for custodial care
in the very place you don't want
to go and are not likely to need!
A Skilled Nursing Facility. medicare
will not pay for custodial
care.
- Medicaid
isn't free. There could be serious
tax implications in gifting your
assets. As well much of your income
could be lost, placing your spouse
in a difficult financial situation.
3.
You can pay for long-term care from
current assets and income
- How
much of your planned or current
retirement income could you easily
and comfortably divert to pay for
your long-term care?
- What
impact will diverting a large sum
of money each month have on your
family's current lifestyle?
4.
You can purchase Long-Term Care Insurance
-
Long-term
care insurance acts as a firewall.
It allows a person's plan for retirement
and asset distribution upon death
to execute properly.
-
Nothing
will pay for the plan of care except
Long-Term Care Insurance.
-
While
policies will reimburse for care
where you choose, they are designed
to help you remain in your home
for as long as possible.
As
time went on, Betty had another mini-stroke
and she now needed help standing and
walking. This put much more of a burden
on her son. David now had to help
his mother stand whenever she wanted
to walk and he had to help her as
she walked. Though it does not seem
like much work, think of this.
Betty
would have to use the bathroom many
times during the day. David would
have to help her in the bathroom
as well. During the night, Betty
would wake David at 2 am to use
the bathroom. Often it was 2 or
3 times a night! David no longer
slept through the night. He became
very stressed as he cared for his
mother.
Failure
to consider the consequences of needing
long-term care, risks the emotional
and physical health of your family
and the integrity of your retirement
portfolio.
Providing
care to chronically ill people makes
healthy people chronically ill?
