How to Pay for Cost of Aging?

The overwhelming question for most seniors is…how to plan for the future? More specifically, the real question is…how to anticipate the cost of the future?

My elderly parents had long term care insurance. They were in their 80’s when they became frail. Up until then, they did not need to access their policy for living assistance or financial coverage.

However, once they became housebound and unable to drive, they needed some help at home. Homecare services enabled them to have some assistance with daily needs and household chores, such as: laundry, meal preparation, grocery shopping, medication reminders, and bathing. Home care staff enabled them to remain safe, secure, and comfortable as they grew older. And, their expenses were paid through long term care insurance.

Planning for your future, as it relates to the elderly and aging, necessitates taking responsibility and ownership of your options. Medicare is not a long term option. Medicare will cover up to 100 days in a hospital or skilled nursing facility, but then the coverage stops. What to do then?

One of the methods utilized to minimize your financial risk is through Long Term Care Insurance.

The average cost of care in a nursing home is $12,000. per month. Elders may require $240,000. for a two year period. Long term care insurance may be able to cover a substantial portion of these expenses.

Finally, non-medical homecare services may be less. Whether hourly or 24/seven live-in care services, elders only pay for the services needed. The major benefit is to enable elderly to remain in their own home.

If you have purchased long term care insurance, please read the fine print. Make certain your policy covers what you expect. Ask questions. Does the policy cover in-home assistance? Are costs associated with living in an assisted living facility addressed in your policy? Are special needs (example, Parkinson’s) covered? Are there limitations to your insurance coverage? What areas are NOT covered by the policy??

And remember…even if you are fully paid-up on any/all long term care premiums, there must be a documented and demonstrated need for living assistance.

JD Miller

About JD Miller

John D. Miller is the founder/owner of Home Care Partners, LLC, a Massachusetts business providing private duty, personalized in-home assistance and companion care services to those needing help in daily activities and household functions. Phone: (781) 378-2164 Email: [email protected] Website:

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