For millions of Americans, the question of whether or not their aging parents will be able to afford long-term care is a very real one. Finances can be a touchy subject, but when it’s time to make a plan for long-term care, having an honest conversation about how your parents will be able to afford senior care services is essential. Below are some questions designed to help adult children get a handle on their parents’ finances:
- What are their assets? First off, establish roughly how much money your parents have in cash, investments, and Social Security. This will provide a basis for funding care.
- Do they anticipate needing financial support? People are living longer than ever, which means more people are outliving their retirement savings. Ask your parents whether they have enough to sustain themselves for the rest of their lives. If not, how much support will they need?
- What types of insurance do they have? Do your parents have a long-term care insurance policy? Life insurance? Understanding their policies can save you time and money in the long run.
- Do you have access to their passwords and account numbers? Keep a copy of all important account numbers and passwords, along with contact information for financial advisers and lawyers. This will make it easier to sort out affairs if your parents become ill.
- Have they signed a power of attorney? Encourage your parents to designate and finalize the paperwork for a power of attorney so that your parents know there is a responsible person they trust to make decisions on their behalf in the event of a medical emergency.
Planning for long-term care is important, even when parents are still independent and thriving. Having an understanding about your senior loved ones’ finances now will help you better prepare for their future care. At Advanced Home Health Care, we understand that conversations about senior care and finances can be difficult at any stage, and we’re here to help. Contact our West Point IA home care team and we can help you start the conversation with your loved one.