1. Organize your Parents' Finances
To pay for your parents' eldercare, it is important to know what financial resources are available to them and you. The amount of financial resources a parent has goes a long way toward determining the quality of care your loved one will receive, if needed. A good first step is to identify your parents' assets and income sources, including Social Security and retirement funds. Identify important documents that will be necessary in the event of an emergency health situation. Additionally, choose a point person, whether it be a family member, friend, or trusted confidant who can access these documents when such an emergency occurs.
2. Plan Ahead for Legal Issues
Although these conversations can be difficult, it is important to discuss creating a will and appointing a durable power of attorney. A will directs how medical professionals will deliver care if your loved one is unable to make choices for himself/herself. Additionally, it decides how property will be distributed after death. A will can alleviate many unnecessary headaches. A durable power of attorney is a person, not necessarily an attorney, who handles specific health or financial needs and can make important decisions if a loved one is unable to do so.
3. Explore Insurance Options
It is important to know that one cannot rely on Medicare or Medicaid to pay for health problems in the golden years. Medicare only pays for certain services, and Medicaid only covers people who qualify as low-income individuals. Long-term care insurance can pay for many elder health problems. Common to all plans is that premiums are higher when the person applying is older, so it is important to look at prices when your parents hit their early fifties. Also, since there are a lot of companies offering policies, it is important to shop around and look at which one caters to your parents' individual needs the best.
If you have any other tips you want to share from personal experience, feel free to comment below!
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