Recently I was involved on a case where adult children, as part of their financial planning, explored the purchase of long term care protection on their parents. (Of course, the parents had to consent, and qualify medically.)
The rationale was this: the adult children and spouses understand that 40% of women, and 37% of men, at some point will assist an individual requiring long term care. (And 70% of people 65 or older can expect to use some form of long term care. Source)
Statistics also that report nearly 2/3 of those caregivers end up making work accommodations to provide care for a family member – usually a parent or in-law that most often is still living at home.
As the parents do not have long term care insurance, the adult children are exploring purchasing the policies as a way to extend their parents’ limited resources and protect their own respective incomes in the event long term care become necessary. Yes, this seems like a generous gift to their parents but this is also smart balance sheet planning on their part.
(The adult children know that AARP has found data showing that a 50-year-old or older family caregiver who leaves the workforce to care for a parent forgoes, on average, $304,000 in lost salary and benefits over their lifetime. These estimates range from $283,716 for men to $324,044 for women.)
Here is a helpful link to a page where you confirm today’s cost of care and what it may cost in the future.
As today there are more options available for long-term care protection solutions, let’s talk.
New York State residents: for a complimentary consultation and review of available options, please call me at (518) 346-2115 or schedule a telephone appointment at a time most convenient for you.