"Money changes everything." Musician Cyndi Lauper had that right. Enough money coming in when you’re ill or incapacitated changes everything.
It can cover the cost of a home-based caregiver or household services that help with grocery shopping, meal prep and housekeeping. It can mean the difference between having the ability to choose a long-term care facility that you’re comfortable with or being forced to choose one that accepts only Medicaid.
Money changes everything, and the time to plan for having enough is when you’re young and/or healthy — when you’re in command of your choices. Waiting until you’re facing a serious illness or you’ve reached a senior age limits your options and threatens your savings.
Most of us know someone whose parent or loved one needs help with basic daily activities or custodial care or even requires around-the-clock care.
People are sometimes forced to move to a facility for assistance because they are unable to care for themselves.
When there’s not enough money, the choices are limited. The most desirable facilities may not accept Medicaid, so you or your loved one could be forced to choose a less-than-ideal nursing home. If you take the time to visit some of these facilities, you may find that they’re not the kind of places you want to spend time in.
Over the past century, Americans’ life spans have lengthened. But more years doesn’t necessarily coincide with good health. So we need to plan for our health and home care in the years when we may not be able to care for ourselves.
Do we want to become a burden on our loved ones? Think about how you will budget living expenses and medical care while living on a fixed income.
Money changes everything.
How will you fund long-term care if you need help with the regular activities of daily living?
Long-term care insurance is designed to help pay for the additional expenses that arise when you require help with necessary daily activities.
It can provide you with the money you need to change everything. It can give you the funds to choose to remain in your own home if you need help with care — something many people would prefer given the experiences of the COVID-19 pandemic.
Long-term care insurance can give you and your family the flexibility to decide which is the best place for you to live while receiving help.
And if a facility is needed, insurance can provide the financial flexibility to allow you to choose the best one for your needs. It could make the difference between living close to family members or moving a long distance away.
In Massachusetts, the monthly cost for a nursing home stay can be upward of $12,000. If you can receive care in your home, the cost may be significantly lower.
But under either choice, your savings could be quickly drained by this recurring expense. And when the money runs out you may need to apply for Medicaid, which will affect your options and limit your control over the situation.
Planning for health care expenses and long-term care needs are basic facets of any retirement plan. They should not be brushed aside. We work hard and look forward to a comfortable retirement, but that only happens with proper planning.
Money changes everything. Working with a professional insurance agent, financial advisor or attorney is time well spent. These professionals can help you explore your financial options for long-term care and ensure that as you age, you can be the one in charge of decisions about your care, your home and your life.
MTA members are eligible for exclusive discounts, including a 5 percent association discount, a 15 percent partner discount and a 10 percent preferred-risk discount. Discounts are available through Mutual of Omaha.
To borrow a phrase, planning changes everything.
Visit www.mtabenefits.com/longtermcare to learn more.
