Dear Friends,
Services of the National Care Planning Council fill a glaring void in the remaining years of most elderly Americans -- a pervasive lack of preparation for long term care. Long term care planning provided by the NCPC corrects this lack of preparation. In pursuit of its goal, the council offers various care planning activities.
First of all, we recently published the "Guide to Long Term Care Planning" which is available online, to the public at no charge, by going to the following web page. www.longtermcarelink.net/guide. This is the largest and most comprehensive material on long term care planning ever produced. Contained here are over 670 printable pages organized into 35 chapters and written by eight experts.
Secondly, we have formalized a process called "The Seven Steps of Long Term Care Planning". This process involves input from eldercare experts, advisers and providers. Each member of this diverse group provides a piece in this care planning puzzle.
Long term care planning applies to two generations. All elderly people regardless of current health should plan for this crisis in their lives. And indeed, long term care can be the greatest crisis an older person ever faces. With the need for care, the elder loses his or her grasp on the three most important lifestyle concerns in old age;
- Remaining independent
- Having enough money
- Maintaining good health
They all disappear with the need for care. No wonder elderly care recipients withdraw, become angry and lose an interest in living. And the cost of care can wipe out a lifetime of savings and destroy equity in a home.
Lack of planning for the older generation has a major adverse impact on family caregivers as well. Typical effects include overwhelming stress, caregiver burnout and all too often, long-lasting family disputes and disagreements.
The need for long term care will happen to about 6 out of every 10 people. Because of this huge risk, all of you who are still working should plan for the need for eldercare as you prepare for retirement. But for younger people like you, the seven steps do not normally unfold in a timely sequence. Planning for a younger generation needs to occur in phases.
Providing funding and putting legal documents into place should occur prior to retirement. Funding options such as special insurance plans or investments need to be initiated now. Aside from a reverse mortgage which may create problems associated with providing care, common funding techniques cannot be done at an older age.
If you can qualify for long term care insurance, this product can be the most effective way of providing future funding. But insurance should be bought now, not in the future. If you think it's expensive now, there's no way most of you could afford this insurance at an older age. Costs are going up about 12% a year.
After retirement, when living arrangements are certain and family care advocates have been identified, the remaining steps of long term care planning should be accomplished.
As an example, I just turned 62. We bought long term care insurance 9 years ago and took care of other planning issues at that time. (By the way, we had one rate increase of 40% on our insurance but it's still much more affordable than had we waited to buy.)
This year we are going to complete the process of planning by meeting with our family and providing resources, expressing our wishes, designating advocates, instructing our children about whom to call for professional services and producing the written agreement.
Sincerely,
Thomas Day |
