assisted living

The Best Age to Buy Long-Term Care Insurance

Dan Rafter — Mon, 18 Dec 2017 09:30:10 +0000

You might not want to think about how you'd pay for an assisted living facility or nursing home stay when you're only in your 50s. After all, the days when you might need long-term care still seem far away.

But your 50s are actually the ideal time to start thinking about how you'd pay for this type of medical care. Why? Because the American Association for Long-Term Care Insurance says that long-term care policies are more affordable when you're in your mid-50s, an age when you're typically healthier than you might be in your 60s or early 70s. In addition to making long-term care insurance more affordable, this also increases the chance that you'll meet the health requirements that insurance companies enforce when you apply for coverage. (See also: Is Long Term Care Insurance Worth It?)

Assisted living means big costs

According to insurance company Genworth, the median monthly cost to stay in an assisted living facility in the United States is $3,750. That's a lot of money. This high cost can make assisted living — or other long-term care facilities — too expensive for many who need their services.

Medicare can't help you with assisted living, either; Medicare only pays for up to 100 days of care in a nursing home or skilled-nursing facility, and you'll first have to spend three days in a traditional hospital before being referred to the nursing facility. And Medicare will never pay the costs of a continuing-care retirement community or an assisted living facility.

Medicaid might pay for some of the costs of an assisted living facility or continuing-care retirement community, but the amount it pays will vary by state. And people must meet strict income and eligibility requirements to qualify for this financial assistance. Since Medicaid is a program designed to aid the impoverished, it will only kick in after the resident has spent nearly all of their own assets on a stay in a home or long-term care facility.

Long-term care insurance can help

This is where an insurance plan can help. Long-term care insurance reimburses policyholders a daily benefit to cover a variety of medical services. The cost of this insurance varies depending on your age when you take out the policy, how much your policy will pay out per day, and whether you choose any optional benefits such as inflation protection.

The American Association for Long-Term Care Insurance estimates that a single 55-year-old with a policy providing a daily benefit of $150 over a maximum of three years can expect to pay about $2,007 a year. A couple the same age who opt for the same amount of coverage can expect to pay an average combined cost of $2,466 a year.

But premiums can increase. While an insurance company cannot raise the premium solely on an individual, it can raise premiums for a group of people with similar characteristics. Read your policy carefully and make a tentative plan for what you might do if your rates go up.

Why the mid-50s is the right time

The cost of long-term care insurance jumps significantly as you get older. The American Association for Long-Term Care Insurance estimates that a couple, both age 60, can expect to see costs jump to an average $3,381 a year for the same amount of coverage. That's over $900 a year more than it would have cost when they were just five years younger.

If you're younger, you're also more likely to qualify for good health discounts from insurers. The association said that in 2010, the most recent year for which stats are available, 46 percent of people age 50 to 59 who applied for long-term care insurance qualified for a good-health discount. Only 38 percent of applicants from the ages of 60 to 69 qualified for these discounts. Again, read your policy carefully to see whether your discount could be rescinded if your health should fade.

As you get older, your odds of qualifying at all for long-term care insurance drop. That's because insurers won't provide this coverage to applicants who have serious health issues. The association reported that in 2010, insurers denied 14 percent of applicants from the ages of 50 to 59. They denied 23 percent of applicants from the ages of 60 to 69.

Long-term care insurance isn't right for everyone. If you don't have much in retirement assets, you might be able to pay for long-term care through Medicaid, a government program that was designed to help seniors who don't have much money.

If you don't think you'll meet the requirements to qualify for Medicaid, you might decide that long-term care insurance is the best choice for you. Make sure to talk with an elder-care attorney who can help you navigate your options. If you find that long-term care makes the most sense, taking out a policy when you're in your 50s is the best move.

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This article is from Dan Rafter of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Ways to Make Long-Term Care More Affordable

Matt Bell — Wed, 13 Dec 2017 09:30:09 +0000

A long life can be both a blessing and a financial burden. As our health inevitably declines over time, medical expenses can skyrocket. What follows are several ideas for keeping later-life health care costs under control.

1. Save for health care like you save for retirement

It's common for people to save for their retirement. Far less common is the habit of saving for future health care costs. And yet, a growing number of people have access to a triple tax-advantaged way to do just that — a health savings account. If you have a high-deductible health insurance policy, that's you. (See also: How an HSA Could Help Your Retirement)

Money you contribute to such an account is tax-deductible, and assuming it's ultimately used for health care expenses, earnings and withdrawals are tax-free. If you don't spend all the money you contribute each year, the balance can be carried over from year to year. With some account providers enabling you to invest the money, you could build up quite a balance.

That money could be used to help pay health care costs in your later years, including some expenses for long-term care, whether provided in your home or a nursing home. The money also could be used to pay the premiums for Medicare Parts A, B, C, and D, and at least a portion of long-term care insurance (LTCI) premiums.

2. Don't over-save

Headlines about later life health care costs can strike fear into your heart and wallet. According to a recent Fidelity Benefits Consulting study, a 65-year-old couple retiring in 2017 will need $275,000 to cover their health care costs throughout retirement — up from $260,000 for couples retiring in 2016. And that's just for normal older age health care; it doesn't include the cost of long-term care.

But let's take a look past the headlines. Assuming a 20-year retirement, $275,000 works out to $1,146 per month. While people's health care costs vary widely, $1,146 is less than some families pay right now for high-deductible health insurance premiums plus monthly contributions to a health savings account.

Instead of relying on headlines about average health care costs, estimate your later-life health care costs to make sure you aren't obsessively over-saving out of fear. You can go a long way toward that by getting some Medicare estimates. Pairing an Original Medicare plan with a Medigap policy or choosing a Medicare Advantage plan can take away a lot of uncertainty regarding out-of-pocket costs for deductibles and copays.

3. Purchase some long-term care coverage

One of the main reasons people end up in nursing homes is dementia, and one of the primary risk factors for getting dementia is a family history. If your parents or grandparents had it, it may be wise for you to pick up at least some long-term care insurance coverage.

Just keep in mind that buying a long-term care insurance policy is not an all or nothing proposition. You could opt for enough coverage to take the sting out of long-term care costs, while still keeping your premiums manageable.

Choosing a longer elimination period (how many days you have to be in a nursing home before benefits begin) will lower the cost of the policy. Other ways to save include opting for a lower daily benefit, a lower maximum benefit period (compare the costs of one, three, and five years as opposed to lifetime coverage), and doing so without inflation protection. (See also: Is Long Term Care Insurance Worth It?)

4. Buy a deferred annuity

The risk of getting Alzheimer's disease goes up with age. According to the Alzheimer's Association, 3 percent of people between ages 65 and 74 have the disease, whereas 32 percent of those over age 85 have it.

One way to manage the financial risk of an age-related disease such as Alzheimer's is to purchase an advanced-life deferred annuity. With this product, you pay a relatively small lump sum premium now in order to secure a guaranteed monthly benefit down the road. For example, a 65-year-old may be able to pay $10,000 now in order to receive $575 per month beginning at age 80. By comparison, if a 65-year-old wanted that much per month right now via an immediate annuity, he or she may have to pay $100,000.

5. Move closer to adult children

One more idea for keeping long-term care costs down is to live near or with your adult children during your retirement, assuming they are in a position (and are willing) to help you. Living close to a caring relative can lessen your dependence on — and the cost of — outside help for long-term care.

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This article is from Matt Bell of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Manage a Family Member's Finances Long Distance

Carrie Kirby — Wed, 08 Nov 2017 08:30:18 +0000

When I lived in Chicago, an elderly relative who lived nearby named me as her financial power of attorney. By the time she needed my help, I had moved to California. But I didn't have to pass the responsibility on to her second choice. I was able to help my loved one from across the country with only a few obstacles.

With online banking, a change of address form, e-sign software, a telephone, and the occasional help of a local notary or banker, you should be able to do everything needed from a distance to keep an ill or elderly person's financial life rolling. (See also: 6 Things You'll Encounter When Taking Over a Loved One's Finances)

Here are some of the things that helped.

Advanced preparation

In my case, the relative had named me both financial power of attorney in case she became incapacitated, and as successor trustee for her revocable living trust. (A revocable living trust is an estate planning tool that people can set up to make this transfer of responsibility seamless both in incapacity or after death.) These two provisions were extremely helpful, when the time came, in allowing me to access and manage her accounts.

Another thing you could encourage a relative to do to get their financial life in order would be to gather any stock certificates they own and transfer them to a brokerage firm, preferably one that offers online access. And if they have records of the date they purchased investments, they should show you where they keep those records or send you copies. If you have to sell the investments on their behalf, you will need this information to establish the cost basis.

An ally that lives close to the relative

Although I lived far away, my parents lived in the same town as our relative. Because of this, they were the ones who physically went through our relative's papers, with her permission, when she needed to move into an assisted living home. My parents provided me with all her paperwork so I could find out what accounts she had and what bills were coming in. Their status as locals also helped them gather recommendations for an estate sale company to dispose of possessions she'd no longer need and a real estate agent to sell her home.

An open relationship with the relative before they become incapacitated

At first, I wasn't acting on behalf of my relative in an official capacity, but just helping her out. For instance, when a CD matured, I would arrange for her banker to call her at her assisted living home to get her verbal permission to roll it over or buy a different CD. I helped her set up online accounts for her banks, and then together we used the bill pay function to get her phone bill and rent set up on autopay so she wouldn't have to write checks anymore. This period allowed me to ask her questions and make sure I knew about all her investment accounts, her assets, and how she liked to manage them.

If you have to take over, an in-person visit helps get things started

When she did become incapacitated, I was able to visit the town where she lived and go to her local banks in person to show the bankers her trust naming me as successor trustee, the power of attorney, and my own identification. The banks then put my name on her accounts, so from that point on, I could call them with questions or move her money as needed without her permission. Also, an attorney informed me that as her trustee, I could reimburse myself for my travel expenses from her account when I had to do business on her behalf.

One great thing about visiting in person at this stage is that the local bankers gave me their cards, and henceforth if I ever had a problem, I could call them directly instead of going through the phone tree. They remembered me, and some of them even remembered my relative, which I think improved the service I got.

Talking to hometown bankers in person also helped me understand the process better. When I needed to get my name on her brokerage accounts without local offices, I had a better idea of how to make it happen. When you can't go to the financial institution in person, you may have to go to a local bank to get a stamp called a medallion on an application to change the account ownership. This is like visiting a notary, in that the medallion holder is indicating that they checked your identification and you are who you say you are. However, a notary can't give you a medallion stamp — it has to come from a medallion holder. Call any local bank to see if they have one who can help you.

Stay in communication with caregivers

It's easy to put bills on autopay, but it's also important to verify that purchases you make on your relative's behalf are really reaching them and are needed. For example, I set up a standing order on Amazon for supplies my relative needed at assisted living. But sometimes when conditions changed, no one would tell me, and I'd end up wasting money on a product she hadn't used in months. In retrospect, I would have kept in closer communication with staff at her assisted living facility to keep abreast of her product needs.

Work with real estate agents and other professionals who use online documents

It's certainly possible to sell property from across the country by signing paper documents and faxing them, but it's a lot easier if the agent you work with simply sends you a link that you can e-sign on your computer.

Keep an eye on statements, especially if your relative still has a checkbook

For awhile after I took over her finances, my loved one still wrote the occasional check, usually to her church. Although I asked her to let me know when she wrote one, she always forgot. Knowing this, I made sure to keep a buffer of cash in her checking account to prevent overdrafts. If your loved one's check writing habits change suddenly, or you're worried they could be taken advantage of, it's probably time to get the checkbook out of their hands. (See also: How to Protect Elderly Loved Ones From Financial Scams)

Check your relative's credit report regularly

This is something you should do when you first start handling a loved one's finances, and periodically after that, especially if you live far away and wouldn't know if someone shady has been calling or visiting your relative. If you have been named power of attorney, you can request the credit report by writing to a credit bureau and including a copy of the power of attorney.

Take care when sharing account information among family members

In a lot of families, more than one person might share the responsibility for handling a loved one's finances. In my case, my parents received her mail and deposited checks at her local banks until I set up all her accounts as direct deposit.

Because of this shared responsibility, we sometimes had to share account numbers or her Social Security number with one another. We made sure not to transmit this information in an insecure way, such as email, but instead would call one another to read an account number over the phone.

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This article is from Carrie Kirby of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

12 Questions to Ask When Choosing an Assisted Living Facility

Carrie Kirby — Wed, 01 Nov 2017 08:30:09 +0000

When a loved one ended up in physical rehab after a fall, I quickly learned what a bummer nursing homes can be. Although the staff tried to maintain a cheery atmosphere, it was clear that if my relative, Marion, stayed on as a permanent resident, she wouldn't be having much fun — and she'd be paying more than it would cost to live in the Four Seasons.

This is why so many families look to assisted living as an alternative to a nursing home for elders who can't live independently but don't need extensive medical support. Nearly a million Americans now reside in assisted living facilities, and that number has grown substantially in recent years, according to the Centers for Disease Control and Prevention. Assisted living facilities are able to charge less than nursing homes because they need less medical staff, and many offer activities and social opportunities far beyond what residents can find in nursing homes.

As we began our search for a place where Marion could enjoy her final years in comfort and safety, I learned that not all such homes are created equal. Here are some questions to ask as you look.

1. Can the facility provide the level of care needed?

Depending on the number and qualifications of staff, some facilities can help patients transfer from a wheelchair to bed or to the shower, while others can only accept residents who can transfer themselves, or at least help. Some facilities have locked memory care units for patients suffering dementia, but others don't. Before investigating further, find out whether your loved one could qualify to live there.

The assisted living management may send a representative to evaluate the potential resident. If your loved one doesn't qualify, ask if there is anything they could do to improve their chances. In our case, Marion was close to the level of self-care needed but was lacking some abilities, so she did additional physical therapy before being re-evaluated.

Beware of facilities that are so anxious to fill rooms that they accept residents they shouldn't. Make sure you ask exactly what help the residents get and what they don't. Find out what the staff to resident ratio is, including during the night shift. They may say they can help residents get up at night, but if one staffer is responsible for 100 residents, it's probably not happening.

If you are in touch with other families who have used the facility, or people in your local medical and nursing community, ask them about outcomes. If the local hospital has admitted a lot of residents from the facility due to falls, for example, that could be a red flag.

On the flip side, if you have a senior relative who needs little to no assistance, an independent living community might be a better option. In such a community, your elderly loved one can enjoy a more independent lifestyle with access to assistance only if they need it.

2. Is the facility licensed and inspected?

These facilities are regulated by state, so check with yours to find out the place's record. In California, you can look up a facility's license status, any citations or complaints, and view inspection records online. Other resources to check are the Better Business Bureau and your state's ombudsman.

3. Can the resident afford it?

Although assisted living facilities can cost a lot less than nursing homes, they don't come cheap. The average assisted living facility charges $3,750 a month, according to the Genworth Life and Annuity Insurance Company. And Medicare's not going to cover it. If you haven't previously been privy to your loved one's finances, now is the time to sit down and have a talk about assets and income, and determine where they can afford to stay and for how long. If there's a chance their money could run out in their lifetime, what's the plan for when that happens? (See also: 6 Things You'll Encounter When Taking Over a Loved One's Finances)

4. What activities are offered?

Once she was settled in her assisted living facility, Marion enjoyed wheelchair fitness classes, bingo games, church services, and other activities. Later, she moved to a memory care unit that offered activities with more direction, such as arts and crafts and cooking classes. If your loved one is active, you'll want to look for a place that offers field trips and maybe even cocktail hours. A more limited person may be content with offerings such as taking some sun on the patio.

5. What is included?

Is the resident responsible for setting up their own phone line and cable TV, or does that come with the rent? Will they eat every meal in the dining room, or cook in their own apartment for some meals? What about laundry service, and supplies such as absorbent pads? Consider the logistics in addition to the costs: Will you be responsible for shopping for supplies and bringing them to the resident? Who will make sure the phone bill gets paid?

6. Can the resident abide by the rules?

Some elders will only consider a facility where they may share an apartment or room with their spouse. Are residents expected to keep their doors open or are they allowed privacy? Can they come and go at will, or do they need to have someone come check them out? Can they invite guests to dine with them? Do they have to go to bed and get up at a set time? These are all questions your loved one needs to consider before agreeing to a facility.

7. What on-site services are provided?

For women of a certain age, a weekly salon visit is a valued part of everyday life. Nail care is also a big plus and can be a morale boost. Transportation service to shopping and doctor visits are also a plus.

8. How does medical care work?

Does the staff dispense medications? How will residents get to their doctor appointments? Is physical therapy available? How long will the room be held if the resident has to be hospitalized?

Some assisted living facilities are part of continuing care communities, meaning that they comprise independent living, assisted living, and rehab or nursing facilities, making movement back and forth easier on residents.

9. How long will they be able to stay?

The resident may qualify for the level of care offered now, but what about if they have a stroke or a fall and can no longer self-transfer or feed themselves? Does the facility have a section that offers a higher level of care, or would you be allowed to hire a nurse to provide additional assistance? Would your loved one have to move to a nursing home? What if your loved one needs hospice care?

It's important to find out in advance under what conditions the resident could be involuntarily discharged. Sadly, after a hospitalization, Marion was not allowed to return to the assisted living facility she loved because her self-care abilities had declined. Luckily, we were able to place her in another facility with a higher level of care. The new facility was more expensive, but not only was it better equipped to care for her, the management promised — in writing — that under most circumstances she would be able to stay for the rest of her life. When the time came for hospice care, it was provided right in her room, where she felt most comfortable.

10. Does it seem like a nice place?

Everything may look good in writing, but of course you will want to tour the facility your loved one would be living in — if possible, with the future resident. The National Consumer Voice for Quality Long-Term Care offers the following signs of quality care: Residents appear well-groomed; call lights and requests for assistance are answered quickly and kindly; residents are engaged in activities; the place appears clean and smells fresh.

One of the nicer assisted living facilities I have visited had a clean, large bird enclosure that residents loved to watch. Outdoor space and space for congregating and accepting visitors are nice too.

11. Will your loved one fit in?

If your elderly relative is still mentally nimble but needs help with physical needs, it's important to make sure they'll have peers in their new home. You can ask management about this, but it's one of the things you'll probably notice on a tour. Engage any residents in common areas in conversation to see if they seem willing and able to socialize with your loved one.

12. When could they move in?

The best facilities sometimes have waiting lists. Before either you or your loved one gets too set on a specific place, find out if there is a waiting list for the type of unit they want. If there is a long wait, consider where they will be living in the interim. If at home, is it safe to wait that long? If in a nursing home, consider that the longer someone stays in a situation that isn't right for them, the more their physical and emotional state can deteriorate.

It's never easy to watch a loved one lose independence. But when the time comes, asking these questions can go a long way toward smoothing the transition and making sure they are in the right place.

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This article is from Carrie Kirby of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Ways to Ease Your Parents Into Assisted Living

Dan Rafter — Tue, 01 Sep 2015 17:00:18 +0000

It's tough to watch your mother or father age. And when you need to sign your parents up for an assisted-living facility? That's never an easy job.

Getting the paperwork ready is enough of a chore. But the most difficult task might be keeping yourself sane as you go through the difficult process of convincing your aging parents that living in an assisted-living facility is the right choice.

This will never be an easy process. But here are six tips for making the transition as easy as possible for all involved.

1. Give Yourself Plenty of Time

Don't expect to check your parents into an assisted-living facility in one week. It takes a long time to gather the paperwork and schedule the medical evaluations that most facilities require.

But even if the process didn't take as long, you should still give yourself and your parents plenty of time to prepare for a move to an assisted-living facility. Let your parents mull over the thought for several weeks before you begin moving them into their new home. They'll need time to accept that this move is the best one for them. If you rush the process? Your parents will be more likely to resent the decision; they'll feel that they are being forced to make this move.

The best time to start talking with your parents about an assisted-living facility is as soon as you start seeing the signs that they need help with everyday tasks.

2. Let Your Parents Remain Decision-Makers

It's tempting to try to handle all tasks involved in getting your parents into an assisted-living facility. Resist. Not only will taking on all this work by yourself result in loads of stress, it will also alienate your parents. Remember, your parents are the ones who will be living in the assisted-living facility, not you. You need to give them plenty of input.

Ask for your parents' advice on everything from what they're looking for in a facility, in what part of town they'd like to live, and on what date they'd like to move. The more you involve your parents in the process — to the extent that this is feasible — the smoother the transition to assisted living will go.

3. Work Closely With the Staff

The professionals working at assisted-living facilities have helped countless people like you and your parents. So take advantage of this expertise. Any time you have a question, even if you think it's a small one, call up the facility. You aren't bothering anyone. Remember, you or your parents are paying for the assisted-living facility. Like any customer, you have the right to ask for help or for answers.

It's easy to become overwhelmed. The quickest way to relief is to rely on the guidance of the medical and administrative staff at the facility you and your parents have chosen.

4. Expect Short Tempers

Don't be surprised if your parents lash out at you during the transition. And don't take it personally. When you help your parents move into an assisted-living facility, you are reversing the roles you and your mom and dad have long held. Basically, you are becoming the caretaker that your parents once were for you. This is not an easy transition for anyone, and your parents wouldn't be human if it didn't frighten or annoy them.

5. It's Time to Downsize

One of the bigger challenges might be convincing your parents to get rid of a large amount of their personal items. The space they are moving into will undoubtedly be smaller than where they are living today. You can make move-in day less stressful by helping your parents downsize their possessions before they're ready to move.

Expect some resistance here, too. Even if your parents understand that their new home doesn't offer nearly as much space, they might still resist parting with their possessions. You might make it easier for them by helping them donate these items to Goodwill or the Salvation Army. This way, your parents will know that their furniture and mementos will be going to people who really need them.

6. Show Them You Haven't Forgotten Them

Once your parents have moved into their new home, make sure they know you're not forgetting about them. It's easy to feel ignored when you're adjusting to a whole new life filled with people you don't know. Ease the transition by visiting your parents often, bringing them back to your home for regular dinners and taking them out to the movies or shopping.

The more you make them feel connected to your family through regular visits and phone calls, the easier it will be for your parents to accept and welcome their new living arrangement.

Have you had to move your folks into an assisted living facility? How'd it go?

This article is from Dan Rafter of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Should You Become Your Parents' Caregiver?

Meg Favreau — Tue, 28 May 2013 10:36:31 +0000

As our parents age, more and more of us are becoming family caregivers — and often filling the role with little preparation or planning. Nobody wants to think about their parents being unable to care for themselves — so often, we simply don’t. But this lack of planning can make caregiving decisions even more difficult, forcing you to make choices at an already stressful time — when care is needed immediately.

Should you become your parents’ caregiver? That’s a deeply personal and nuanced question that you can only answer for yourself — but this article addresses some of the factors you should consider.

What Does Your Parent Want?

If your parents don’t need care yet, now is the time talk to them about it.

Yes, it might be a difficult conversation — especially to start. In this caregiving article from MarketWatch, Suzanna de Baca, vice president of wealth strategies at Ameriprise Financial, suggests, “If it feels uncomfortable or confrontational to raise such topics out of the blue, adult children can use a story from the news or an anecdote about a friend to introduce the discussion.”

Ask your parents if they already have a plan or hopes for long-term care. If they don’t, or if the plan isn’t very specific, here are some questions that might help facilitate your discussion:

What are your plans for retirement?
Do you have a living will?
Do you have long-term care insurance, or another financial plan in place in case you need care?
What would you ideally like to happen if you need long-term care? Where would you like to live, and who would you like to care for you?

Don't forget to chime in with your own wants, needs, and feelings, too. While becoming your parents' caregiver can be rewarding, it can also be a significant emotional, financial, and time burden. But by being open and honest about your needs and feelings, you can work with your parents to create a plan for care that benefits everyone.

Costs: Money and Time

Whether you care for your parents yourself, hire in-home care, or help your parents move into an assisted living facility, costs can be steep — both in terms of what you have to pay for care and money you lose by taking time off. According to the aforementioned MarketWatch article,”Women who take time off or quit work to care for a loved one lose an average of $324,044 in lifetime wages, pension and Social Security benefits...for men, the average loss is $283,716.”

While this is no small amount of money, it can cost even more to place your parent into a care facility. To get an accurate idea of how much other types of long-term care might cost where you live, take a look at this cost of care map, which breaks down costs on a state-by-state basis:

In some situations, it is possible for you to get paid to be your parents' caregiver. Money can come from the government, from your parents' funds, or in rare cases, by long-term care insurance. If your parents are on Medicaid, check to see if their state allows family members to be paid as caregivers (many states do). For other possibilities, such as being paid directly by your parents, it can be useful to speak to a financial planning professional.

There are also other costs to consider. For example, if you move from full-time to part-time work in order to take care of your parents, you might not just lose part of your wages, you could also lose your health insurance and other benefits afforded to full-time employees. When making your caregiving decision, it can be helpful to create hypothetical budgets for a number of different scenarios — providing care yourself, hiring an in-home health aid, etc. — so you can easily compare and contrast the pros and cons of each.

Benefits of Caregiving

While caring for your parents can be both stressful and expensive, it can also be an incredibly rewarding experience. According to an article on caregiving from CNN,

Looking after a parent allows you to get to know them better. You are often able to spend more quality time together, talking and learning from one another. You can ask them the questions you've always wanted to ask, and hear stories of their life.

And while you're providing them with support, it's also possible that they can provide you with support as well. Obviously, it will depend on their condition, but your parents might be able to help with childcare or household tasks.

In the end, whether or not you care for your parents is a deeply personal decision — and one worth spending a lot of time thinking about.

Do you currently care for your parents, or do you plan to? Why or why not?

This article was made possible by the support and inspiration from Genworth Financial, a S&P 500 insurance company with more than $100 billion in assets. Check out Genworth's website for a guide to planning for long term care.

This article is from Meg Favreau of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: