From longer life expectancy to the challenges of the “sandwich generation,” the graying of America has become a popular subject in today’s media. But even as the topic takes center stage it’s still often overlooked or under-discussed in our homes.
Seventy percent of Americans will need some kind of long-term care after they reach 65, whether it’s a stay in a residential nursing facility or assistance in their own home. And according to government statistics, the typical person relies on long-term care for three years.[i]
"Having 'the talk' about long-term care with loved ones can be an awkward conversation because of the sensitive subject matter," says Tom McInerney, president and CEO of financial services company Genworth. "Furthermore, many young adults often feel invincible to the physical changes and challenges that aging can present.”
Costs can add up quickly, especially when they’re unforeseen. The expense of daily care for an uncertain length of time can be more detrimental to a retirement nest egg than a downturn in the stock market.
But it’s not always simple to decide whether a long-term care policy makes sense for you. And if it does, what should it cover? if you’re starting to think about planning for how to look after yourself or others, here are a few first steps to consider:
1. Have a family conference.
Perhaps the most important step is to gather your family around the table and talk about how you see the future unfolding.
That’s not always easy, because we don’t like to imagine not being self-sufficient and relying on others. In fact, people may be more willing to talk with their loved ones about funeral arrangements than long-term care options. But having everyone join the conversation and have their say is crucial to understanding how your loved ones want to be cared for and what steps you’ll need to take to ensure their wishes are carried out.
2. Match up potential needs and resources.
At the recent Social Innovation Summit in Silicon Valley, Genworth unveiled the R70*, a state-of-the-art suit created with the help of Hollywood special effects experts that simulates effects of aging such as dimming vision, fading hearing and movement restricted by arthritis. The R70 is an important reminder that your plan needs to be customized to you. Depending on your particular health or circumstances, your care requirement may be greater, or start earlier, than others.
And it’s not just elderly members of your family who may need help: Around 40 percent of care recipients are people of working age – under 65 – who have had an accident or illness.[ii] For resources you may find helpful as you plan, click here.
3. Know your options.
Not everyone will be covered by Medicare, Medicaid or other insurance benefits. If you don’t plan ahead, you could find yourself stuck in the middle – paying the cost of care out of income or savings. And costs can vary depending on where you live. Click here to calculate theCost of Long Term Care in your area.
4. Get all the advice you can.
Talk to other members of your extended family or friends who may have gone through the same thing, or use social media to interact with caregivers who are willing to share their experiences, good and bad.
But it also helps to talk with expert planners who can help you tailor a strategy to fit your family's needs. There are plans available that may be more affordable than you think. Click here to learn more.
5. Start early.
Finally, it’s always easier to plan ahead than to react when circumstances overtake you. If you decide that a long-term care policy is right for you and your family, then the message is: The earlier (and in better health) you start, the better.
[i] http://longtermcare.gov/the-basics/how-much-care-will-you-need/
[ii] http://www.rwjf.org/content/dam/farm/reports/issue_briefs/2014/rwjf410654