Sharing the Costs of Long-Term Care Insurance

Many people assume they cannot afford long-term care insurance to protect themselves and their families from the financial, emotional and physical sacrifices needed to provide long-term care for a loved one. However, long-term care premiums are a reasonably small expense when compared to paying for care out of pocket, as these costs can run as high as $100,000 a year.

Despite these facts, finding ways to pay for premiums can still be a genuine challenge for many families seeking coverage. Fortunately, there are several funding options available to help people on tight budgets pay for long-term care insurance, including sharing the premium costs with family members.

Since adult children often become the primary caregivers, investing in their parents’ future can cover the costs of professional services and in turn, ease the otherwise financial, physical and emotional burden on family members.

Moreover, family members providing care for aging loved ones are often forced to dip into their own finances to pay for caring expenses such as drugs, medical co-payments, transportation and more. According to a study by the National Alliance for Caregiving, the average caregiver spends roughly 10 percent of their household income to cover the costs of providing long-term care, often by skipping vacations, delving into savings, taking out loans or neglecting their own health care needs. Sharing the costs of long-term premiums is one way children can help protect themselves from these risks.

Adult children may also want to assist with long-term insurance costs for their own self-interest, as any potential inheritance may dwindle down if their parents were forced to pay for care themselves out of pocket.

In addition, some children want to help pay for long-term care insurance because they are concerned about the quality of care their parents might receive without it. Although they may qualify for Medicaid, family members would often prefer to buy insurance so their loved ones have more options and receive the best care possible.

As families across the nation begin to organize their households for fall, it’s important for everyone to have a retirement plan in place that secures their financial future. A long-term care policy can help and with a little help from family members, even consumers on tight budgets do not have to be without protection.