FINANCIAL PLANNING GUIDE
Long-term care can be very expensive. Many people assume that Medicare or other government programs will pay for everything. In fact, patients and families most often pay for long-term care and services out of their own pockets. Advance planning can help eliminate financial stress. Plan for the unexpected—get all of your financial information together and discuss with your family where it is located and who you want to be responsible for taking care of financial decisions.
Record all financial information including:
- Bank and brokerage accounts
- Deeds, mortgage papers, and titles
- Social Security payment information
- Pension and retirement information
- Monthly budget, payments, and outstanding balances
- Health and life insurance policies
- Medicare information
- Medical and durable powers of attorney
- Wills
- Copies of advance directives for physicians
- Copies of medical records
- Records of medications
Plan for long-term costs including medical treatment, prescription drugs, adult day services, in-home services, and residential care services. Financial resources are available to cover these costs and advanced planning is necessary. The following is a list of possible financial resources:
Insurance: Government insurance programs such as Medicare and Medigap; disability insurance; group or personal health insurance; life insurance and long-term care insurance. It is important to plan ahead as many types of insurance will not be available after a diagnosis of Alzheimer’s disease is made.
Medicare is a federal health insurance program available for people 65 or older. Most medical expenses are covered including doctor and hospital care, prescriptions, some home health care, and rehabilitation therapy. Medicare does not cover long-term nursing home care.
Medigap insurance or supplemental insurance coverage is supposed to cover what Medicare doesn’t. Coverage and premiums vary according to the carrier.
Disability insurance provides income when someone can no longer work due to illness or injury.
Long-term care insurance covers cost of care including nursing home care. If you have such a policy, it is important to review it carefully to make sure that Alzheimer’s is covered and to confirm the specifics of the type of care and when care can begin.
Life insurance may be an important source for cash. Some life insurance policies have an accumulated cash value that can be accessed as a policy loan.
Retirement benefits: IRAs, 401(k), 403(b), and Keogh plans may be a source of available resources to cover care.
Personal savings and assets including savings accounts, home equity, and personal assets may be resource to help cover the cost of care.
Government assistance including Social Security Disability Income (younger than 65), Supplemental Security Income (65 and older), and Medicaid (low income and asset levels or persons who have used up most of their own money).
Community support includes local services such as hospice, respite care, transportation, Meals On Wheels, etc.
Review financial resources of the caregiver to determine if they are capable of providing assistance and how much.
Speak with a financial advisor to identify all resources as well as appropriate tax deductions.
This section is provided for educational and informational purposes only and is not meant as legal or financial advice, nor should this be construed as legal or financial advice. Please consult with your own tax accountant and/or financial planner.