Harry Cline

The cost of long-term care in the United States continues to rise. BankRate reports that assisted living fees increase by more than 4 percent each year. You may not want to consider moving to an institutional setting, but there is a chance you (or your spouse or children) will need these services.

Planning for Long-Term Care

Factors such as smoking, drinking, stress, and exercise all play a role in the likelihood that you will require assistance later down the road. SixWise, an online healthy living blog, notes that diet also contributes to your health and that overeating on a regular basis can cause heart disease, diabetes, and a handful of other diseases that can affect your long-term quality of life. Genetics is also something to consider; if your parent(s) weren’t healthy, there may be hereditary conditions that will eventually inhibit your independence.

The sooner you begin planning for your long-term-care, the better. Talk with your adult children to find out whether they are willing to provide this type of care or whether it’s in everyone’s best interest for you to plan to relocate to an assisted living facility once issues arise.

Saving for your retirement isn’t a matter of a simple mathematical equation. As USA Today explains, how financially secure you’ll be in your senior years depends on age, income, and estimated future spending. If you’re not sure where to start, consider using a retirement calculator. When figuring in your estimated monthly spending, use a worst-case scenario so you aren’t caught off guard by unexpected expenses. You’ll need to ramp up your savings if you’re planning to retire early or if you’re already in your 40s or 50s.

Paying for Care

Planning is one thing, but paying for long-term care is another beast completely. Where will you come up with the money? Here are a few options to consider:

• 401K/IRA funds
• Health savings accounts
• Home sale proceeds
• Veterans benefits
• Personal savings
• Medicaid
• Bridge loan

Life Insurance Benefits Now

Another option if you have a life insurance policy valued at more than $100,000 is selling the policy in a process known as “life settlement.” This is essentially a private transaction that conveys ownership of your life insurance policy for an amount less than the death benefit, but more than the surrender amount were you to cash in through your insurance provider. This option provides cash that you can use now to help pay for living expenses and medical care; your survivors won’t receive benefits, but you will also no longer be responsible for the monthly premium.

A Medicaid insurance settlement is a similar option. Several states now offer Medicaid-eligible seniors the option of allocating their life insurance payouts to provide for long-term care. If you qualify, the value of your policy is not counted toward your net worth, making it easier to obtain Medicaid assistance.

Lower Your Risks

While you can’t predict with 100-percent accuracy if you will ultimately wind up in need of assistive care, there are steps you can take to lower your risks of serious diseases and injuries.

The AARP notes that while some extra weight after the age of 50 is okay, losing just 4 percent of your total body weight can slice your chances of developing diabetes in half. You should also make a point to exercise for a minimum of 15 to 20 minutes each day and minimize your intake of processed foods, which contain high levels of sugar, unhealthy fats, and inert ingredients that don’t properly fuel the body. Have your vision checked every year, and don’t skip doctors’ appointments, even if they are just to follow up on a minor issue.

You can also update your home with minor accommodations that will help prevent accidents and injuries. Making your home safer can help you put off long-term care and its costs. Simple and inexpensive features include railings along both sides of staircases, automatic nightlights in frequently-used rooms and hallways, and taped-down rugs and carpeting (which reduce tripping hazards).

Regardless of your age, it’s never too early to make a plan for your long-term healthcare needs. You may have to get creative in financing this care, but you have more options than ever to ensure that your waning health doesn’t become a burden on your children and grandchildren.

When a senior loved one loses a spouse, there are many things they must consider in a very short period of time; funeral arrangements, life insurance policies, and figuring out how they’ll make it on a very different lifestyle are just a few of the things they must wrestle with on top of their grief and sadness. It can all be very overwhelming, causing depression, stress, and anxiety and leading to mental and physical decline. That’s why it’s important to do everything you can for your loved one during this difficult time, starting with making some hard financial decisions.

Fortunately, there are several options for seniors who have just suffered a loss and who need to secure their financial futures. From downsizing to a smaller home to cashing out insurance policies, there are many roads your loved one can take to prevent any surprises or difficult decisions. Start by helping them get a firm handle on their finances for their own security.

Keep reading for tips on how to help a senior loved one financially after suffering a loss.

Check Their Credit

A good credit score can open up a world of possibilities for your loved one, from being able to move into a smaller home to helping them use a credit card to pay their bills on time. According to ConsumersAdvocate.org, you should help your loved one check their credit score, and if it’s not the best, look into a company that will help them repair it and build it back up.

Consider Downsizing

Downsizing is a huge decision, especially after the loss of a spouse, when emotions are high and comfort is hard to find. However, it may be the best decision for your loved one once they’ve begun to heal, as moving to a smaller home can help them save money, stay safe, and give them less to take care of. Many seniors find that their current home doesn’t meet their needs after retirement due to health or mobility issues, but moving into a house without stairs or with safety modifications can help prevent any problems. Make sure your loved one is comfortable with making such a big change, and don’t push the issue if they aren’t.

Look at Insurance Policies

Your loved one’s spouse may have had a life insurance policy, but sometimes they don’t cover everything. If your loved one has a policy of their own that can be sold or cashed out, this is an option for those times when a large lump sum is needed (to pay medical bills, for instance). Of course, this option is best used as a last resort, as cashing out a policy means less of a payout when your loved one passes away.

Get the Bills Paid

When a senior loses a spouse, lots of things must be taken care of very quickly in the midst of a lot of grief and pain. Recurring bills and simple, everyday things can easily become overlooked, so it’s important to help them keep track of those tasks so they don’t get behind. Once the funeral is taken care of, help them go through their utilities, credit card bills, and other payments to find out what the due dates are, and make sure the bills get paid on time. It may be beneficial to download an app that can help you keep track of these important details.

Helping your senior loved one take care of their financial responsibilities after the loss of a spouse is a big job, so make sure you take care of yourself, as well. Reduce stress and anxiety by practicing self-care, and talk to a friend or loved one if you’re feeling sad. After all, you want to be in the best possible health if and when a problem should arise.