senior care Archives - Hanover Mortgages

March 31, 2021

Family Matters: Affording Care for a Family Member

Twenty-three year-old Emilie Lima Burke has started to save $20 per day.

It’s not for a vacation or her retirement fund. Instead, she’s preparing for the moment she expects she’ll need to take care of her aging dad and all his expenses. Burke, who runs the site BurkeDoes.com, a financial, health and career resource for millennial women, says that her parents used to joke that she and her sister would be “their retirement plans.”

But that’s seems no longer a laughing matter.

“My dad has struggled with long bouts of unemployment…He has no money saved at all,” says the 23 year-old. “I know that at some point I will be [his caregiver]. When there is no retirement fund or any assets for aging parents to fall on, you just have to make a plan.”

We’re living longer these days, which means that many of us have the great fortune of growing older with our parents. The number of Americans ages 65 and older expected to nearly double by 2050, according to the U.S. Census.

With longevity, though, comes the increasing responsibility and financial pressure to care after our aging family members, especially, if like Burke, our family doesn’t have a financial plan already in place. The average working household has “virtually no retirement savings.”

It’s no surprise then that about one in four Americans (with parents ages 65 and older) is helping a parent with his or her affairs, offering financial help or caring after them.

And not to cause alarm, but more than half of the country – 29 states – have so-called “filial support” or “filial responsibility” laws that could potentially require adult children to pay for their parents’ care if they don’t have the means to do so for themselves.

If you’re struggling to support a family member or anticipate needing to care after a loved one down the road, here are some ways to help make your efforts more affordable.

Know Their Bottom Line

If a family member is turning to you for help, particularly financial help, then it’s more than appropriate to have a candid money talk – no matter how uncomfortable it may be. Ask to see how much they have in the bank, as well as what other streams of income they may be receiving (e.g. social security, a pension, insurance payout, a portfolio distribution, etc.). Create a budget to pay for as much as possible with your parent’s income and assets before tapping your own bank account.

“I see people who take on credit card debt or stop paying their own bills to care for their parents, but a much better option is to first exhaust all of the resources that the parents can have access to,” says Belinda Rosenblum, a financial strategist at OwnYourMoney.com.

Having a paper trail of statements showing income and expenses will also prove helpful if your parent needs to apply for Medicaid, the health insurance program designed to help those with little money. Here’s where you can learn more about Medicaid eligibility. Care facilities sometimes have a Medicaid expert on staff to assist with your application, too.

Reach Out to Local and National Resources

When business coach Amanda Abella’s grandmother was diagnosed with Alzheimer’s a year ago, her family needed to find a way to pay for her extra care. The adult day care alone, she estimates, would have cost $100 per day.

For guidance, they turned to her grandmother’s doctor and the social worker at the hospital and discovered the Alliance for Aging, a Florida-based private, not-for-profit that provides a range of services to older people, including personal care, legal help, transportation, meals, etc. After several rounds of interviews and almost a year of being on the wait list, Abella’s grandmother succeeded and now receives free nursing care.

The lesson: Never assume that you have to go it alone. Help is out there. Local and national resources offer grants and support to seniors. To start your search for funding visit: Family Caregiver Alliance and Paying For Senior Care.

Also worth mentioning: If your aging parents are veterans look into the Department of Veterans. “Often veterans overlook or are not aware of the benefits they are eligible for such as medical care or prescriptions, especially if they’ve been separated from the military for a long time,” says military money life coach Lacey Langford.

Look Into The Family and Medical Leave Act (FMLA)

If you need to take time off work to care for a family member, be it a parent, child or even yourself, but worried about losing your job in the process, you may benefit from the Family and Medical Leave Act (FMLA).

The federal law grants certain workers up to 12 weeks of unpaid leave per year with the promise of getting their jobs back. You can also keep your company health benefits during your time off. Some states such as California, New Jersey and Rhode Island allow qualified workers to earn at least part of their paycheck during this time.

Remember the Tax Deduction

Track expenses and if you afforded more than half of your parent’s needs during the tax year (including utilities, medical bills, food and general living expenses) and he or she earned less than $4,050 (not counting social security), then you may be able to claim mom or dad (or both) as a dependent on your 2016 tax return. Doing so offers you additional tax benefits. You can find more information on how to claim a parent as a dependent on TurboTax.com.

Keep in mind that whether or not your parent qualifies as a dependent, you might be able to deduct the medical expenses (including prescriptions and doctor visits) you paid for on his or her behalf from your taxable income. The IRS requires the total of these expenses to be more than 10% of your adjusted gross income in order to claim the deduction.

Consider Long-Term Care Insurance

If your parents have yet to reach the age where they may need some assistance, see if they’ve looked into long-term care insurance. This can come in handy if they think you may need to afford a nursing home or at-home care later down the road. (And about 70% of Americans who reach age 65 will likely need some time of long-term care before as they age). Medicare does not cover these costs and they can be very expensive.

For example, the average cost of a home health aid, which long-term care would cover, can be anywhere from $34,000 to $57,000 a year depending on where you live. If your parents don’t have enough saved to cover this, it may fall on your shoulders. It’s just as beneficial to you for them to seriously consider long-term care.

You may decide to purchase a policy yourself and have your parent(s) be the beneficiary.

Keep in mind that the ideal time to buy long-term care is when your parents are in their 50’s and 60’s (specifically between 52 and 64). The younger and healthier the beneficiary is, the more likely he or she will qualify (and the lower the monthly premium). For a couple in good health applying for long-term health care in their mid-50s, the average annual cost is about $2,350 (or less than $200 a month).

Create a Family Fund

Finally, like Burke, it pays to start saving early for the financial what-ifs surrounding our family members.

You can hope for the best, but should also prepare for the worst. Tucking away even $10 or $15 a week for the next five or ten years while your parents are still able to take care of themselves could yield an essential nest egg for everybody when life takes a turn.

Have a question for Farnoosh? You can submit your questions via Twitter @Farnoosh, Facebook or email at farnoosh@farnoosh.tv (please note “Mint Blog” in the subject line).

Farnoosh Torabi is America’s leading personal finance authority hooked on helping Americans live their richest, happiest lives. From her early days reporting for Money Magazine to now hosting a primetime series on CNBC and writing monthly for O, The Oprah Magazine, she’s become our favorite go-to money expert and friend.

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March 12, 2021

How to Care for a Loved One Without Breaking the Bank: The Complete Guide

Taking care of aging parents is an inevitable part of life, and it’s not always easy. We watch the people who raised us slowly slip away, and we want to do everything in our power to give them the best care we can.

While it may be challenging to watch your loved one age, there are luckily tons of resources available to help make the transition into long-term care as simple as possible. This guide will provide you with the tips and information you need to help make a decision on what kind of care is best for your family, options to help you afford that care and how to take care of yourself throughout the process.

How to Begin the Conversation

One of the most challenging parts of planning for senior and long-term care (LTC) for your loved ones is simply knowing how to approach the subject. Many times, children must start this difficult conversation with their parents, and the role reversal can be intimidating. While the intention may be pure and you’re just looking out for your loved one, you never know how they’ll react. They might feel thankful for your concern, or they might feel attacked and that their independence is being taken away. But with almost three quarters of the U.S. population needing some type of LTC, it’s likely that you’ll eventually have to have the conversation. Luckily, there are steps you can take to make sure that it’s positive and effective.

Prepare in Advance

Before you sit down with your loved one to have a conversation about long-term care, it’s important that you do your due diligence. By doing some homework and understanding the basics of long-term care, you can lead the conversation and hopefully answer questions that your loved one may have about their options. This also provides you the opportunity to see what long-term care options are available locally and the benefits they offer. It’s also suggested to prepare talking points or questions ahead of time — this is especially helpful if the conversation becomes emotional.

Include Any Necessary Family Members

Planning care for a loved one can be an emotional experience, but you shouldn’t have to do it alone. If you have siblings, be sure to bring them into the conversation. What each of you envision as the best option for your parents or loved ones may vary, so it’s vital that everyone is on the same page prior to having the larger conversation.

Start Your Discussions Early

While it’s hard to think about long-term or end-of-life care for our loved ones, it’s important to begin discussions early. There are many factors to consider when it comes to long-term care, and you may not come to a resolution the first time around. By starting your discussions now, you can revisit all your options without feeling rushed to come to an agreement. This will also allow you to find unparalleled care and provide the best quality of life for your loved one.

Let Your Loved One Be Part of the Decision Making Process

One of the most common concerns for seniors when it comes to long-term care services is losing their independence. To help honor your loved one during this time of transition, it’s vital that this conversation is a two-way street. This allows them to share their opinion on what might be right for them and helps everyone be on the same page.

Budgeting & Saving for Long-Term Care

Everyone wants the best for their loved one. But sometimes, the best care comes with a hefty price tag. End-of-life and long-term care options can be an expensive, and wind up putting the caregiver in debt and under pressure. It’s important to know what options fit your budget, and where you might be eligible to receive benefits or financial aid.

Plan Ahead and Set a Budget

No one wants to think ahead to needing long-term care and support. But if planning continues to get pushed aside, your loved one could be in need of care before you’ve had an opportunity to consider the options. Worse than that, you may have fewer care options, and that could put a dent in your savings. The cost of long-term care is higher than many think — the average cost of a private nursing home room can run you more than $100,000 annually.

Your parents likely saved money their entire lives for big things like your education, and all the small things like clothes and supplies. You can do the same for them and save money for their eventual LTC. By planning far in advance for LTC, you can start putting small amounts of money away without sacrificing your regular spending habits. Using budgeting software can help you determine how much to set aside or save to pay for long-term care, while also staying on track with your other expenses.

Veterans’ Benefits

The Veterans Administration (VA) has a pension benefit that both veterans and their surviving spouses may be eligible for. The benefit is called Aid and Attendance, and is highly underutilized by veterans. Only five percent of these assistance funds are even applied for, meaning there are many qualified people who could be receiving financial assistance. The funds from Aid and Attendance are tax-free and can be used for a variety of long-term care costs, including in-home care, assisted living communities and even some nursing homes. If your loved one has served in the military, urge them to look into whether or not they are eligible to receive these benefits. It could save you a ton of money!

Long-Term Care Living Options

Often when people think of long-term care options, their minds immediately go to dim and depressing homes. Fortunately, there are many different facilities available that can accommodate all health and wellness needs for seniors. Whether your loved one prefers to stay in the comfort of their own home, or if they need more assistance at a live-in facility, we’ve outlined some of the most popular long-term care options.

In-Home Care

In-home care or private caregiving is a highly popular option that allows a person to stay in their own home or a family member’s home comfortably. This will usually involve non-medical care or assistance, such as bathing and dressing, basic house chores, and ensuring that medication is taken properly.

Assisted Living Facilities

An assisted living facility is a great option for a loved one who still want to maintain their independence and can care for themselves, but might need an extra hand. It is similar to in-home care, only the care takes place in a designated community or facility. Assisted living facilities are not for individuals who need intensive medical care. However, there is staff to help with medication reminders and basic health care monitoring.

Adult Day Care Health Centers

While not one of the most popular or well-known options for care, adult day care centers are an excellent option for caretakers, including in-home caretakers, who still have to work a 9–5 job. These facilities provide a safe setting during daytime hours, and many often have specialized services and activities on-site as well. From physical therapy, health care services and social engagement events, adult day care health centers offer a variety of benefits for your loved one.

Nursing Homes

If your loved one has fallen ill and needs extensive medical care, a nursing home may be the right option. It is the in-between for people who don’t need to be in hospital care, but can no longer be cared for at home. The type of nursing home will vary, and you’ll find that some are set up similarly to a hospital, whereas some feel more like an assisted living facility.

Nursing homes will have aides or nurses on-hand 24 hours a day who can help with custodial care such as bathing, dressing, and eating, as well as skilled care which includes medical monitoring and administering treatments.

Retirement Community

Also known as active-adult communities, a retirement community is a great option for your loved one who still wants to maintain their sense of freedom and independence. These residences allow seniors to continue living their lives, but with a few added benefits. Retirement communities offer amenities such as housekeeping, 24-hour security, laundry services, transportation to errands and appointments, and so much more. These residences are perfect for seniors who are still able to take care of themselves, and provide peace of mind for their families.

Long-Term Care Insurance

While long-term care is a necessary part of aging, many people don’t prepare for the financial burden that comes with it. Federal data shows that 15% of people who require some form of long-term care pay more than $250,000 out of pocket, and that amount is not realistic for most Americans. Purchasing LTC insurance is one way to prepare for the costs that come with senior services that are not covered by your regular health care provider.

Why to Consider LTC Insurance

Since most regular health insurance does not cover long-term care, LTC insurance is something to consider to help pay for the costs. It’s important to urge your loved ones to begin shopping for different policies early to find the best fit for their situation, but don’t wait until they need coverage. This could help alleviate the financial pressure down the road. Medicare will cover a minimal amount of long-term services and care — typically up to 100 days in a nursing home if your loved one requires rehabilitative care.

Qualifying for LTC Insurance

In order to be eligible for long-term care insurance, you must be in good health at the time of application. It is highly likely that insurance companies will deny you for LTC insurance if you already require some form of long-term care, or if you require assistance with daily living activities. In addition to being in good health, it’s recommended to purchase a policy at about 60 years old, though you may be as young as 40. There are also pre-existing conditions that may disqualify you from LTC insurance, including but not limited to Alzheimer’s, dementia, and muscular dystrophy.

Costs and Benefits

Like other insurance, long-term care insurance is underwritten by insurance companies, and the premiums you pay will depend on a variety of factors. It definitely pays to shop around and get various quotes, as the same policy could change by about $1000 or more based on the company. Despite the cost of premiums, LTC insurance provides a safety net and will likely be minimal compared to what you would pay out of pocket for care and services.

Other Things to Consider

While your primary concern during this time of transition is ensuring your loved one is taken care of, it’s important to think about yourself as well. Setting someone up with long-term care affects everyone involved, but it’s easy to get wrapped up with only worrying about them. Here are a few things to consider for yourself when planning long-term care for a loved one.

Think About Your Own Needs and Abilities

Providing someone with long-term care can be stressful, and it’s highly unlikely that it’s the only stressor in your life. For many people, it’s unrealistic that they can commit their entire life to providing care, and they will likely have to carry on with daily tasks such as work, errands, and personal care. Be cognizant of your personal health and wellbeing during this time of transition, as many caregivers tend to put themselves last. According to the Family Caregiver Alliance in San Francisco, more caregivers are hospitalized due to burnout and stress-related illnesses than other medical conditions.

Emotional Support for Yourself and Others Involved

When you make the decision to move your loved one into a long-term care facility, it’s an act of love and respect for their well-being. As we’ve discussed, it’s certainly not an easy decision to make, and can be an emotional time for a family. Much like any life-changing event, people will react in different ways and likely feel a variety of emotions. Make yourself available to others as a shoulder to lean on, and consider professional help if you begin to feel too overwhelmed. There are many support groups and community resources that can help with emotional fatigue and stress.

The sooner you begin to educate yourself and learn what options are available for your loved one, the sooner you can start preparing for this life transition. Long-term care is something that a majority of Americans will need in some capacity during their lifetime, and yet so many people choose to ignore the issue until it is too late. There are many care options available, and you can encourage your loved one by letting them know this is not a loss of their independence — this is just the next chapter of their life.

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March 4, 2021

7 Resources When Caring for an Elderly Parent

Caring for an aging parent can be hard. These resources can help, financially and emotionally.

No parent wants to be a burden to their children—emotionally, physically or financially. As time passes, each generation faces the same caregiving issues. By using new technology and services available today, the caregiver and the person/people receiving the care can efficiently manage senior care costs.

The daily cost of caregiving

According to Forbes.com, taking care of aging parents can take a toll on the caregiver’s quality of life and future:

Grandparents spending time with their young grandchildren outdoors

“Many caregivers are so stressed that they do not realize how these out-of-pocket costs of caregiving add up,” says Cindy Hounsell, President of the Women’s Institute for a Secure Retirement (WISER). Common out-of-pocket senior care costs include:

Transportation: Doctor visits, errands and other activities to remain socially connected.
Food and household goods: Meal preparation, grocery shopping, as well as a wide range of household goods, clothing and personal items.
Medical: Pharmaceuticals, doctors’ consultations, medical procedures and rehabilitation.
Lost time: Most doctor appointments and trips to the bank must take place during working hours, which could mean taking time off from work. While some jobs are flexible, many aren’t.

Balancing senior care costs

According to the Center for Retirement Research at Boston College, the average time spent caring for elderly parents is more than 77 hours a month. This is like having a second job, which is why balancing your own financial and emotional needs can be challenging.

If you are caring for an elderly parent, consider these seven resources to help manage senior care costs:

1. Available benefits

Depending on where you live, government programs like Medicaid can help in taking care of aging parents. Some states have waiver programs to help manage everyday senior care costs. “Make sure the older person you’re assisting is getting every benefit to which they are entitled,” says Catherine Roper of Caring.com. She recommends the National Council on Aging’s BenefitsCheckUp®, a free service to help determine which programs are available to both you and your loved ones.

2. Caregiving services

When taking care of aging parents, in-home care can be expensive and involve a mountain of forms. Today, there are many independent, qualified caregivers available. For example, you may be able to find websites where retired nurses offer their paid services. Also, most seniors living alone at home have empty bedrooms and, “often a young person is looking for ways to save on housing costs,” Roper says. “Swapping some caregiving tasks for low-cost (or even free) housing can be a great option, in addition to being an enjoyable experience for both the older and younger person.”

The elderly may also have vehicles at their home that are rarely utilized, Roper says. “They’d be happy to offer it to a young person in exchange for driving them where they need to go. This can be a great way for a young person to save on car payments,” she says.

to get an hourly wage for the caregiving tasks a young person would be doing anyway,” Roper says.

4. Home monitoring

If full-time assistance isn’t required, installing a home monitoring system can aid in making sure your loved one is still supervised in case of an accident. There are also self-monitoring devices that can be worn and will automatically detect if an elderly parent takes a fall.

5. Meal services

Local outreach programs provide hot meals to homebound individuals and can help keep senior care costs down. Such services can also help in caring for elderly parents with regulated, controlled diets.

6. Support groups

Always remember you are not alone. So many caregivers run into similar emotional and financial struggles when taking care of aging parents. Reach out locally and through online forums. Someone may have solutions you haven’t considered.

7. Family

Everyone can help out when caring for elderly parents. Split up care duties with other family members when possible. Even long-distance family can help with managing bills, visits (which means a break for the primary caregiver) and companionship via the phone or video calling. Just knowing people care can ease anxiety or brighten a day.

Recognizing the heavy burdens of caring for elderly parents is the first step to maintaining balance during a tough time. A bit of research and planning ahead could help guide new caregivers toward making better decisions. But most importantly, cherish the quality time with your loved ones—these moments make it possible to embrace the good days and look forward to the future.

Source: discover.com

January 24, 2021

Budgeting Tips for the Sandwich Generation: How to Care for Kids and Parents

If you’re part of the sandwich generation, having a money management plan is crucial.

Everyone knows that raising kids can put a serious squeeze on your budget. Beyond covering day-to-day living expenses, there are all of those extras to consider—sports, after-school activities, braces, a first car. Oh, and don’t forget about college.

Add caring for elderly parents to the mix, and balancing your financial and family obligations could become even more difficult.

“It can be an emotional and financial roller coaster, being pushed and pulled in multiple directions at the same time,” says financial life planner and author Michael F. Kay.

The “sandwich generation”—which describes people that are raising children and taking care of aging parents—is growing as Baby Boomers continue to age.

According to the Center for Retirement Research at Boston College, 17 percent of adult children serve as caregivers for their parents at some point in their lives. Aside from a time commitment, you may also be committing part of your budget to caregiving expenses like food, medications and doctor’s appointments.

Budgeting tips for the sandwich generation include communicating with parents.

When you’re caught in the caregiving crunch, you might be wondering: How do I take care of my parents and kids without going broke?

The answer lies in how you approach budgeting and saving. These money strategies for the sandwich generation and budgeting tips for the sandwich generation can help you balance your financial and family priorities:

Communicate with parents

Quentara Costa, a certified financial planner and founder of investment advisory service POWWOW, LLC, served as caregiver for her father, who was diagnosed with Alzheimer’s disease, while also managing a career and starting a family. That experience taught her two very important budgeting tips for the sandwich generation.

First, communication is key, and a money strategy for the sandwich generation is to talk with your parents about what they need in terms of care. “It should all start with a frank discussion and plan, preferably prior to any significant health crisis,” Costa says.

Second, run the numbers so you have a realistic understanding of caregiving costs, including how much parents will cover financially and what you can afford to contribute.

17 percent of adult children serve as caregivers for their parents at some point in their lives.

– The Center for Retirement Research at Boston College

Involve kids in financial discussions

While you’re talking over expectations with your parents, take time to do the same with your kids. Caregiving for your parents may be part of the discussion, but these talks can also be an opportunity for you and your children to talk about your family’s bigger financial picture.

With younger kids, for example, that might involve talking about how an allowance can be earned and used. You could teach kids about money using a savings account and discuss the difference between needs and wants. These lessons can help lay a solid money foundation as they as move into their tween and teen years when discussions might become more complex.

When figuring out how to budget for the sandwich generation, try including your kids in financial decisions.

If your teen is on the verge of getting their driver’s license, for example, their expectation might be that you’ll help them buy a car or help with insurance and registration costs. Communicating about who will be contributing to these types of large expenses is a good money strategy for the sandwich generation.

The same goes for college, which can easily be one of the biggest expenses for parents and important when learning how to budget for the sandwich generation. If your budget as a caregiver can’t also accommodate full college tuition, your kids need to know that early on to help with their educational choices.

Talking over expectations—yours and theirs—can help you determine which schools are within reach financially, what scholarship or grant options may be available and whether your student is able to contribute to their education costs through work-study or a part-time job.

Consider the impact of caregiving on your income

When thinking about how to budget for the sandwich generation, consider that caring for aging parents can directly affect your earning potential if you have to cut back on the number of hours you work. The impact to your income will be more significant if you are the primary caregiver and not leveraging other care options, such as an in-home nurse, senior care facility or help from another adult child.

Costa says taking time away from work can be difficult if you’re the primary breadwinner or if your family is dual-income dependent. Losing some or all of your income, even temporarily, could make it challenging to meet your everyday expenses.

“Very rarely do I recommend putting caregiving ahead of the client’s own cash reserve and retirement.”

– Quentara Costa, certified financial planner

When you’re facing a reduced income, how to budget for the sandwich generation is really about getting clear on needs versus wants. Start with a thorough spending review.

Are there expenses you might be able to reduce or eliminate while you’re providing care? How much do you need to earn each month to maintain your family’s standard of living? Keeping your family’s needs in focus and shaping your budget around them is a money strategy for the sandwich generation that can keep you from overextending yourself financially.

“Protect your capital from poor decisions made from emotions,” financial life planner Kay says. “It’s too easy when you’re stretched beyond reason to make in-the-heat-of-the-moment decisions that ultimately are not in anyone’s best interest.”

Keep saving in sight

One of the most important money strategies for the sandwich generation is continuing to save for short- and long-term financial goals.

“Very rarely do I recommend putting caregiving ahead of the client’s own cash reserve and retirement,” financial planner Costa says. “While the intention to put others before ourselves is noble, you may actually be pulling the next generation backwards due to your lack of self-planning.”

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Making regular contributions to your 401(k), an individual retirement account or an IRA CD should still be a priority. Adding to your emergency savings each month—even if you have to reduce the amount you normally save to fit new caregiving expenses into your budget—can help prepare you for unexpected expenses or the occasional cash flow shortfall. Contributing to a 529 college savings plan or a Coverdell ESA is a budgeting tip for the sandwich generation that can help you build a cushion for your children once they’re ready for college life.

When you are learning how to budget for the sandwich generation, don’t forget about your children’s savings goals. If there’s something specific they want to save for, help them figure out how much they need to save and a timeline for reaching their goal.

Ask for help if you need it

A big part of learning how to budget for the sandwich generation is finding resources you can leverage to help balance your family commitments. In the case of aging parents, there may be state or federal programs that can help with the cost of care.

Remember to also loop in your siblings or other family members when researching budgeting tips for the sandwich generation. If you have siblings or relatives, engage them in an open discussion about what they can contribute, financially or in terms of caregiving assistance, to your parents. Getting them involved and asking them to share some of the load can help you balance caregiving for parents while still making sure that you and your family’s financial outlook remains bright.

Source: discover.com

January 21, 2021

Top 5 Tips for Keeping Senior Care Costs Low

Top 5 Tips for Keeping Senior Care Costs Low – SmartAsset

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Caring for an aging parent or friend can be expensive. But when you know that someone needs assistance, it’s hard to avoid offering to help. While there’s nothing wrong with providing a relative or confidant with financial support, you don’t want to lose sight of your own financial goals. Here are five strategies that you can implement to keep senior care costs low.

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1. Invest in Long-Term Care Insurance

As an extension of health, disability and life insurance, long-term care insurance provides coverage for nursing home care, home health care and other services that meet the daily needs of elderly individuals. While long-term care insurance isn’t cheap, purchasing it may be worth it if your older family member or friend can’t qualify for Medicare and doesn’t have enough savings.

It’s best (and more affordable) to sign up for long-term care insurance before chronic or debilitating conditions surface. Just be sure to read the fine print and compare benefit options before picking a policy for you or your loved one.

2. Make Your House Home-Care Ready

Installing a walk-in shower or stair lift when you’re healthy may seem crazy. But making your home more accessible may pay off, especially if it eliminates the need for you to move to a special facility when you grow older.

Some states and nonprofits offer loans and grants to help low-income elderly individuals make modifications to their homes. So that’s something to consider if you need help covering the cost of your renovations.

Related Article: Do Wealthy Investors Need Long-Term Care Insurance?

3. Look Into Government Programs

The federal government offers some programs that make senior expenses less expensive. For example, your loved ones can apply for traditional Medicare. If they need help covering additional costs, they can consider enrolling in a Medicare Advantage or Medigap plan.

Depending on your loved one’s situation, they may be eligible for Medicaid. They’ll have to meet certain financial qualifications. But if they qualify, Medicaid coverage can lower the cost of their healthcare.

4. Compare Care Options

If you need a professional to help care for your elderly relative, you may need to look beyond nursing homes and assisted living facilities. It’s a good idea to take the time to visit different adult care facilities and meet with independent caregivers, home care agencies and home health aides. That way, you can compare a range of costs and services.

Even if you have elderly family members who can live alone, they may need companionship. If you have a busy schedule, you may be able to find a virtual caregiver online who can support your older loved one.

Related Article: 4 Financial Emergencies That Could Derail Your Retirement

5. Claim as Many Tax Breaks as Possible

If you choose to take care of an aging parent or relative on your own, you’ll need to make sure you’re financially prepared to assume that responsibility. Fortunately, there are tax breaks for individuals who serve as caregivers. For example, you may qualify for the Child and Dependent Care Credit.

Final Word

Caring for an older family member can place a big strain on your budget. That’s why it’s important to make the most of any resources and programs that can lower the cost of senior care.

If you’re concerned about your ability to cover your own healthcare costs in the future, you’ll need to make saving for retirement a priority. And it doesn’t hurt to make an effort to stay healthy to reduce your chances of contracting a serious illness or disease.

Liz Smith Liz Smith is a graduate of New York University and has been passionate about helping people make better financial decisions since her college days. Liz has been writing for SmartAsset for more than four years. Her areas of expertise include retirement, credit cards and savings. She also focuses on all money issues for millennials. Liz’s articles have been featured across the web, including on AOL Finance, Business Insider and WNBC. The biggest personal finance mistake she sees people making: not contributing to retirement early in their careers.

Tag: senior care

How to Care for a Loved One Without Breaking the Bank: The Complete Guide

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