According to an AARP report, family caregivers in Indiana provided $10.8 billion in unpaid care to elders in 2019. Even now, as the pandemic has tapered down, it is likely that this number has increased. This article will explore the financial implications of unpaid caregiving in Indiana (although unreimbursed elder care is a nationwide issue) and how long-term care insurance and proper planning can help compensate family caregivers.
Financial Implications of Unpaid Caregiving in Indiana
Elder care in Indiana is a growing expense for both individuals and families. Most of this care is provided by family members, who are often left with little to no compensation for their time and effort.
The lack of planning for long-term care needs by most Americans is one of the main reasons why families are shouldering such a large financial responsibility.
Role of Long-Term Care Insurance and Planning to Compensate Family Caregivers
Long-term care insurance can help offset the costs associated with family caregiving. These policies typically reimburse policyholders for some expenses incurred while receiving long-term care services. In addition, long-term care insurance can help provide financial security for family caregivers by reimbursing them for some of their out-of-pocket expenses.
Creating a plan that can adequately cover the costs associated with family caregiving is essential to providing compensation for unpaid caregivers. There are a few steps that need to be taken to create such a plan:
- Estimate the cost of long-term care services: This can be done using online calculators or speaking with a financial advisor.
- Look into government programs that can help cover long-term care costs: Programs like Medicaid and Medicare can help cover some of the costs associated with long-term care services.
- Purchase long-term care insurance: This type of insurance can help cover some of the costs associated with long-term care services.
- Invest in assets that can be used to pay for long-term care: Assets such as life insurance policies or annuities can be used to pay for long-term care services if needed.
- Create a budget: This will help you determine how much you can spend on long-term care services without jeopardizing yourself financially.
- Speak with a retirement planner: They can help you create a plan that meets your specific needs and goals.
- Review your plan regularly: Plans should be reviewed regularly to ensure they meet your needs and goals.
Family caregivers in Indiana provide billions of dollars in unpaid care each year, yet they often receive little to no compensation for their time and effort. The same can be said for many other states in the US. The lack of planning for long-term care needs by most Americans is one of the main reasons why families are shouldering such a large financial responsibility. Long-term care insurance and proper planning can help offset some of the costs associated with family caregiving. These measures are essential to compensating unpaid caregivers and ensuring that families are not left struggling financially.
Contact a retirement planner today to discuss your long-term care needs and develop a plan that meets your specific goals and objectives.
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Information presented is believed to be current. It should not be viewed as legal or tax advice. You should always consult an attorney or tax professional regarding your specific legal or tax situation. Aegis Wealth Management, Inc., is not engaged in the practice of law or accounting. Tax rules are subject to change at any time. The content was prepared by a third-party journalist.