There’s truly no place like home. This old adage and many more indicate how many of us feel about our home. The thought of having to move your parents or loved one into an assisted living or nursing home, can be tough and it’s no easy decision. However, if remaining at home is causing health or safety concerns, it may be time to consider an assisted living or nursing home. Making the decision to move a loved one into an assisted living home is a big decision – a decision no family takes lightly.
It’s easy to get caught up in the emotional considerations, but it’s important to take a look at your loved one’s financial considerations. Advanced planning can help your family handle the difficult decisions ahead.
Be Realistic About Finances
If you are helping to care for an elderly parent, you need to have an honest discussion about finances with them. When reviewing senior living facilities, be sure to get a realistic estimate on how much care will cost each month, from facility payments, food, and entertainment expenses. Your parents may have money set aside to help pay for their own care. Figure out how much your parent can contribute monthly and look for homes that are well within your budget.
Encourage Family Communication
If you or your siblings can contribute financially to care costs, discuss ways that you can keep contributions fair and equal. Many families work together to diffuse out of pocket expenses by sharing the financial burden if they are able.
Know What Is Covered
Many families believe that programs like Medicare covers long-term care – but it doesn’t. The most common Medicare solutions – part A and part B – are not designed to cover long-term assisted living costs. Medicare Part A helps with home health care, hospice, hospital stays, in-patient rehab facilities and skilled nursing facilities. Medicare Part B is designed to cover doctor services, outpatient hospital care, and physical therapy. When creating your financial plan, be sure to know what is covered with your plan, and what isn’t.
Understand Your Options
With the cost of assisted living facilities on the rise, many families choose to purchase long term care insurance. These policies are designed to help cover the costs of assisted living facilities and increased care. The earlier families start planning the more time they will have to allocate funds to pay for long term care expenses. Plans vary, so it’s never too late to review this option.
Read More: How to Ease the Cost of Long Term Care
Supplement with Life Insurance Benefits
While life insurance is not a substitute for long term care insurance, consider adding a provision to your life insurance policy. The Farm Bureau Daily Living Rider uses a portion of your death benefit to supplement living costs if your loved one is unable to do two of the six essential independent living tasks: eating, toileting, transferring, bathing, dressing, and/or continence. Your Daily Living Rider may be able to supplement increased living costs and provide funds for additional care, reducing out of pocket expenses.
Read More: Unexpected Uses for Life Insurance
When it comes to planning for long term assisted living, it can be beneficial to plan early. Your Farm Bureau agent can help you set up a budget, and help ensure you have the proper coverage in place to help later in life.