Helping your clients build a budget is probably the most important task you can undertake. Many people don’t budget, simply because they do not know how. This is not only problematic when it comes to daily spending, but also long-term savings.
Many of your clients may be focused on retirement plans and saving into a 401k, but those savings might not be helpful when your clients need access to senior care. It is important to help your clients set aside funds specifically for senior care, so if the need arises, they do not need to tap into another form of savings to afford this care.
Here is a guide to helping your clients budget for senior care.
Be aware of the options
Helping your clients budget for senior care is a lot simpler when you are aware of the available plans and how much they can cost. There are many options in senior care, and each person’s care is unique, depending on their needs.
Assisted living is a cheaper option for those seniors who need some help at home and light care. However, home-care is a much more expensive option where a senior might need 24-hour assistance and medical care at their home. These options need to be considered when calculating how much should be budgeted for senior care.
It is very important to note that some senior care facilities allow caregivers to set their own rates. Tandem Careplanning allows caregivers to set their own rate and then charge a small service fee on that. This is so that caregivers can be satisfied with what they earn, and there is transparency between caregivers and clients.
Options to pay for senior care
Another important aspect of budgeting for senior care is knowing how senior care is paid for. Once you are aware of the costs involved, it becomes easier to plan for payment options. When helping your clients budget, it is important that they are made aware of the options and the total cost at the end.
A long-term-care insurance policy can be helpful, especially if your clients are younger and planning for their future. The insurers are able to set aside the right amounts for the right care, and your clients only need to worry about including the premium in their budget.
Alternatively, your clients can invest what they would pay per month into a savings account and use cash for their senior care. When you have younger clients, options such as these are easier to implement.
However, if your clients are older and have not set aside funds for senior care, you may need to look at other options. For example, are there employee benefits available or unclaimed that might still be valid?
If not, you can ask your client to list income and assets. This might reveal a long-term investment or insurance plan that has been forgotten, and this might be a valuable option when paying for senior care.
Seeking support
When helping your clients to budget for a long-term senior care program, you might be hesitant to recommend that they look for assistance. However, if there are no other options, a loan might ease the burden. This is especially true when helping a younger client afford the senior care of their parent.
Advising that your client take a loan might not be a favorable response, but it is a better outcome than your client filing bankruptcy. Help your client review their options, and then help him or her budget appropriately for a loan.
Even having the correct budget, taking on a loan can go a long way in easing the long-term stress of an additional financial burden. In the short term, a monthly loan payment may also cost less than the monthly care cost, and this is where a loan is a more favorable option.