While studies show that many seniors are healthy and functioning at high levels, it is inevitable that as they grow older issues will surface related to their independence.

Learn about long-term care insurance.

Eldercare planning requires a multi-disciplinary approach that encompasses many aspects of life such as healthcare, activities of daily living, transportation, financial, social, and emotional wellbeing.

If you were to ask an older person what his or her most important concerns are, you’d undoubtedly get a variety of different answers. But according to surveys frequently conducted among the elderly, the most likely answers would be the following three concerns:

1. Remaining independent in the home without intervention from others
2. Maintaining good health and receiving adequate health care
3. Having enough money for everyday needs and not outliving assets and income

Although the elderly are definitely concerned about the need for long-term care, it is not high on the list of concerns. The reason is that it’s human nature not to worry about an event until it happens. Certainly everyone is concerned about having his house burn down or having an accident or getting an illness or ending up in the hospital or needing long-term care but these things are typically beyond our control. We can’t sit around and worry about them.

But people do plan for the risk of loss and consequently typically set money aside, purchase insurance, or prepare written documents to cover the unexpected.

The Dangers of Not Planning for Long-Term Care

Without proper planning, the need for long-term care can result in the single greatest crisis in an elderly person’s life. Here are the top 5 risks of not planning for long-term care.

1. Being a Burden –– The lack of planning always has an adverse effect on the older person’s family. It usually results in great sacrifice or financial cost on the part of the spouse or children. Or, for those with no immediate family, long-term care can be a burden to extended family members. As if the current lack of planning for long-term care were not a great enough burden on the immediate or extended family, the failure to plan, for the current generation of baby boomers, could be even more devastating on spouse or family in the future.
2. Risk of Financial Devastation –– As we age and the need for long-term care increases, so does the significant risk of incurring a substantial financial burden. The upward spiraling cost of long-term care can and does financially devastate elders and their families.
3. Risk of Losing Independence and Control –– Without proper planning, elders often become dependent on people who don’t necessarily have their best interest at heart. Without the proper legal documents an elder might be forced into relinquishing control into the wrong hands. Without medical planning, others might make medical decisions contrary to ones wishes.
4. Risk of Dependence On Government Programs –– Many elders are fearful of becoming “wards of the state.” Medicare pays only limited long-term costs while Medicaid is for the indigent. For most elders this is not the route to go. As Federal, State, and Local Governments face greater deficits and impose more budget cuts, elder’s options become more restricted and more dangerous.
5. Risk of Institutionalization –– Without the proper planning required to stay in one’s home and community, it might be necessary to move to a long-term care facility, where an elder would become dependent on others for his or her every need. Elders admitted into a poor quality facility may be neglected and/or abused.

Why People Don’t Plan

There are many reasons why people don’t plan ahead for long-term care. These include the natural tendency to avoid thinking about becoming dependent on others for your care, misinformation about the risks of needing care, and lack of knowledge about the cost of care and payment options.

Most people don’t like to think about getting older, developing a disability, becoming less independent, or needing help with personal care. Many people don’t realize that their chance of needing long-term care by the time they turn 65 is as high as 70 percent.

People commonly misunderstand how expensive long-term care is and how it is paid for. Consumer surveys show that many individuals don’t realize that health insurance, Medicare, and/or disability coverage do not pay for most long-term care services. Medicaid pays for some long-term care services, but only if you qualify for the program because you have limited income and financial resources.

Some people find it too difficult to raise these subjects with their loved ones, making it difficult to explore and define their plans. Adult children often feel like they are patronizing their parents if they raise the subject or they are afraid of giving the impression that they might not want to provide care if it is needed. Parents often don’t want to make adult children uncomfortable or to discuss details of their finances with them.

Finally, while people realize it’s important to plan, they don’t know how to go about it or where to start. The best way to begin is with small and easy steps. Even just talking with your loved ones is a great first-step!

Here’s Where to Start…

Get a grip on long-term care planning. Our special report entitled “7 Steps To Advanced Long-Term Care Planning” simplifies the process and outlines step by step exactly what you need to do. Click here to learn more and receive your FREE copy of this report.

The best time to begin planning is TODAY!

My Elder Advocate has many years of experience dealing with all aspects of long-term care planning. This planning requires extensive knowledge about long-term care systems, government and community resources, and legal and financial planning through our trusted affiliate advisors.

We work directly with you and your family to…

1. Open a dialogue with your elderly loved one
2. Gather important information
3. Evaluate needs and research community resources
4. Develop a financial plan to meet long-term care needs
5. Arrange for legal documents
6. Develop a family caregiver resource plan
7. Update your plan regularly

In other words, we make sure that all the ducks are in a row.

If you are nearing retirement, we help you come to grips with critical issues so that your children are spared the challenge of having to “guess” what decisions you would have preferred.

If you are watching your parents age (however gracefully), we help you and your family answer questions now so that you won’t be on the guessing end, wondering what they would have preferred.