The Costs of Being a Caregiver

Becoming the caregiver for a sick or disabled loved one can be stressful physically, emotionally, mentally – and financially.

Sixteen percent of the U.S. civilian population were eldercare providers from 2013-2014, according to data from the U.S. Bureau of Labor Statistics. These American adults provide assistance to elderly and disabled adults in their community without any compensation. The costs associated with being a home care caregiver run an average of $20 an hour, according to Genworth’s 2015 Cost of Care Survey.1

Becoming a caregiver, either part-time or full-time, can dramatically impact your finances. Even assuming that the person receiving care has sufficient income streams, becoming a caregiver could require you to reduce your work hours or quit working entirely. If the person requiring care does not have adequate income, you may need to help by covering expenses or taking that person into your home. Social Security, Medicare and Supplemental Security Income (SSI) may provide some help, but qualifying can be difficult and complicated. For example, having too many assets in a disabled child’s name can limit his or her eligibility for SSI.

Many people mistakenly assume that Medicare or Medicaid will pay for nursing home care. Unless your family member is indigent, he or she won’t qualify for Medicaid. Medicare, which covers retirees over age 65, covers only the highest level of nursing home care – skilled care, provided by trained medical personnel around the clock – and only if your loved one goes from a three-day hospital stay directly to the nursing home. Even then, the payments are limited.

Long-term care insurance can provide coverage for nursing home and home health needs, but it must be in place before the insured needs those services. Many individuals purchase a long-term care policy when in their 50s, although some financial professionals recommend doing so earlier. Pricing for long-term care policies varies with the age and health of the individual. If there’s a question of ability to pay out of pocket for years of nursing home care, you may want to discuss long-term care insurance with your spouse, your parents and anyone else for whom you may wind up responsible.

You and your spouse may also want to consider disability insurance. Thanks to advances in medicine, conditions that once led to death now often lead to disability. The individual and family wind up in a Catch-22 – losing the income that person would have produced, while having the same, or greater, living costs for that person. Social Security does provide income to permanently disabled individuals, but those payments rarely come close to replacing the wages or salary that person earned before becoming disabled.

Financial issues related to caring for an elderly or disabled loved one can be complicated. You may have time to plan as a family member ages or a disease progresses, or you may not if an accident suddenly renders a loved one unable to work or live independently. Written by Securities America

Back to my page

Featured Posts
Recent Posts
Search By Tags
Follow Us
  • Facebook Basic Square
  • Twitter Basic Square
  • Google+ Basic Square

801 S. Fillmore, Suite 530

Amarillo, Texas 79101

Click to check the background​
of this firm FINRA's BrokerCheck

The BBB has determined this business meets accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints. BBB Accredited Businesses pay a fee for accreditation review/monitoring and for support of BBB services to the public. BBB accreditation does not mean that th ebusiness products or services have been evlauted or endorsed by the BBB, or that the BBB has made a determination as to the business product quality or competency in performing services.

Navigation Financial Group is not a CPA Firm. Advisor Representatives are Registered Representatives of and offer securities through Securities America, Inc., member FINRA/SIPC. Planning and Advisory Services available through Securities America Advisors, Inc. $ymbil is offered by Ladenburg Thalmann Asset Management, Inc. (LTAM). Navigation Financial Group and its affiliates are independent of Securities America and LTAM. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. This site is published for residents of the United States and is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security or product that may be referenced herein. Persons mentioned on this website may only offer services and transact business and/or respond to inquiries in states or jurisdictions in which they have been properly registered or are exempt from registration. Not all products and services referenced on this site are available in every state, jurisdiction or from every person listed. Not FDIC Insured, No Bank Guarantees, May Lose Value. Not a Deposit and Not Insured by any Government Agency. As of January 1, 2020, the California Consumer Privacy Act (CCPA) suggests the following link as an extra measure to safeguard your data: Do not sell my personal inforamation.

© 2020   |   All Rights Reserved