Why is it so critical that you talk with your parents about their money? Because as they get older, their ability to make their own financial decisions will likely get worse. If you are caring for elderly parents, this is one important discussion that you need to have with them.
In many instances they won’t be able to keep track of all their income and expense sources, so it’s critical to get everything organized now. Often times medical expenses skyrocket as time goes on, so if they aren’t prepared for this it can be disastrous.
How do you get the ball rolling?
Obviously this is often a hard topic to discuss, and many don’t know how to break the ice. The best option is to do it during a calm time. For instance, right before a big event such as a wedding is obviously not the best time.
Consider scheduling a meeting with a financial planner and make sure to be present yourself. As long as you are patient and explain to your parents the importance of this, eventually they will open up.
What’s the most important issue?
Long-term care — this is what you need to talk to them about. Believe it or not, the most popular reason for bankruptcy filings today is uncontrolled medical expenses.
But won’t their health insurance cover this? In most instances, no – it won’t. Standard coverage won’t help with long-term care such as nurse visits or assisted living centers. If they don’t have additional coverage, they need to finance these expenses themselves.
This is why planning ahead of time is so critical. Remember, no company is going to insure you right on the eve of your parents moving into a nursing home. This just means they are definitely going to have to pay for it.
The insurance companies have to make money too. And the way they do that is by only paying claims to a small percentage of their clients. So the less chance of that happening, the more likely your parents are of getting accepted. In other words, if they are already in declining health they might not be able to get insurance at all.
Consider paying it for them. Many times companies will offer long-term insurance to employees for a steep discount. Therefore, ask them about buying it for them.
Some parents will hesitate at this because they want to be self-sufficient. But it might be necessary if they don’t have the money they need for coverage. Remember, even if they apply early enough to get accepted for long-term coverage, it might be so expensive that it dramatically diminishes their quality of life. In this case it is pointless. That is when you want to step in.
How do you get them organized so you don’t have to check in every other day?
Often times the elderly lose track of their income and expense sources.
The solution? Introduce them to the world of direct deposits and auto payments. This will make handling deposits and payments much easier for you and them.
Make sure to check in regularly when caring for elderly parents… Particularly as they get older. Stay in contact with them and ensure finances are under control. Of course, the level of contact will depend on their personal desires as well as your relationship. The best thing to do is to respect their wishes, while doing the best you can to help them in the process.
Tags: caring for elderly, elderly parents, health insurance, long term care
