From the Alzheimer’s Association
The cost of providing long-term care for a person with dementia can be very expensive. Many people assume that government programs, such as Medicare and others, will pay for it. However, it is individuals and families that typically pay for services out of their own pocket.
To reduce the financial stress that can come from paying for care requires advance planning.
Carefully go over financial and legal documents. Getting a handle on existing expenses, assets and income can help you identify any necessary documents that are not in place.
Gather documents such as:
- Wills
- Medical and durable powers of attorney
- Bank and brokerage accounts
- Deeds, mortgage papers or ownership statements
- Pension and other retirements benefit summaries
- Social Security payment information
- Stock and bond certificates
- Monthly or outstanding bills
- Insurance policies
Alzheimer’s is a progressive disease, and the type and level of care a person needs will change over time. Consider all the costs you might face now and in the future.
-
Ongoing medical treatment, including diagnosis and follow-up visits
- Treatment for other medical conditions
- Prescription drugs
- Personal care supplies
- Adult day services
- In-home care services
- Residential care services, including assisted living and nursing homes
The person with dementia may not have all the money he or she will need to pay for care. Caregivers need to review their own resources and decide if they can provide financial assistance and how much.
- Review savings, investments and insurance plans.
- Assess the need to increase life insurance or disability insurance.
- Consider what plans need to be in place in case something happens. Caregivers may want to consider if long-term care insurance is right for them. This type of insurance could cover the costs for most care settings, including nursing home, private home, assisted living or adult day center.
- If the person with dementia is dependent under the tax rules, caregivers may be able to use their own workplace flexible spending account to cover the person’s medical costs or dependent care expenses.
- Talk with other family members about pooling resources together to pay for care.
Professional financial advisers can be valuable sources of information and assistance. They can help:
- Identify potential financial resources
- Identify tax deductions
- Avoid bad investment decisions that could deplete your finances
When choosing a financial adviser, check qualifications such as:
- Professional credentials
- Work experience
- Educational background
- Membership in professional associations
- Areas of specialty. Ask the adviser if she or he is familiar with elder care or terminal-illness issues.
