Talking Money

With Julie Stav

Dear Robert,
The biggest misconception about long-term care is that you don’t have to inquire about these services until you need them. The time to investigate all your options is while you and your elderly parents are still in good health.
There are very good long-term care insurance policies available today that provide financial assistance for the services needed by an aging parent. The cost will depend on the age and health status of the applicant.
When looking into a long-term care policy, consider the following features:
* Benefit Amount. The amount available to cover expenses, usually stated in terms of a daily or monthly maximum.
* Benefit Period. The length of time that the policy can pay the benefit amount, usually a number of years.
* Waiting Period. The time that you are responsible for your own expenses before the insurance begins to pay benefits.
* Inflation Protection. An optional feature that increases your benefit amount yearly to help your coverage keep up with future increases in costs.
Here is a bit of good news: You will be able to deduct the qualified premiums you paid for long-term care insurance as medical expenses. These range from $280 per person at age 40 or younger, to $3,530 for someone who is 71 years old or older.
For more information about how to take advantage of this deduction, as well as the higher limits for the year 2007, go to www.irs.gov and request Publication 502(2006).
You’ll need to weigh all your alternatives and discuss them with your parents, taking into consideration not only the financial implications of your decisions but also their need for dignity and independence.
For many people, the thought long-term assistance brings to mind images of a cold and sterile nursing home. But since most people would prefer to stay at home in familiar surroundings as long as possible, there are other options to consider. Here are a few:
* Homemaker and chore services. These include cleaning services and assistance with basic household tasks, as well as a companion that could help with transportation and daily activities.
* Home modifications. These can range from inexpensive grab bars and shower benches in the bathroom to more expensive modifications such as installing elevators. Assistive devices such as an emergency call system and other handy gadgets can also help people with poor vision and mobility.
* Home healthcare. A home health aide can provide personal care, household services, and assist with medications.
* Adult day care. Adult day care centers can offer stimulating activities, social interactions, nutritional counseling and supervision for the elderly person while the caregiver goes to work or runs errands.
* Residential facilities. Also available is a wide array of accommodations that don’t limit residents’ independence. These facilities offer dining, recreation, transportation and social events along with long-term care services.

for more information

You can find out about sources of long-term care services in your area by visiting a public service of the U.S. Administration on Aging at www.eldercare.gov/Eldercare/Public/Home.asp. Or, you may call an Eldercare Locator information specialist toll-free at 1-800-677-1116.

Look for my daily radio program Monday through Friday on your local
Univision radio station.