At some point, it is important to have a tough and honest discussion with your advisors…
- How would you handle a care event lasting 2, 3, 8, even 10 years or more?
- How would a care event affect your income, your investments? Would you need to invade the principal? Be honest.
- How would a care event affect the plans you have for your business, your retirement, your family, your charities?
- What role would your family play in your care?
- How would your care event affect the lifestyle of your spouse during your care or after your death?
- Do you understand the role Medicare and Medicaid play in long term care?
- How much would you be willing to pay out of pocket for your care?
- Would you need to sell real estate, investments, or stocks to pay for your care? Could you be certain that market conditions and potential tax consequences would make that a viable option?
- How much would you want insurance to pay?
- Is your health care directive up to date, and when is it time to consider a power of attorney?
As much as a written plan funded by insurance helps protect income, assets and your estate planning, I believe that how it protects your family is of equal value:
- It gives them a clear direction and permission to get help.
- When a funding source is identified, there will be less emphasis on the financing of the care and more on finding the right care that’s needed.
- There will be fewer tough decisions that could strain family harmony.
- It helps your family supervise rather than provide care so they can mitigate unrealistic expectations of caregiving.
- It allows them to live their lives, free of guilt, knowing that your plans are unfolding as you laid them out.
If there comes a day in which you can no longer speak, will you be ready?