Last week, I shared with you a bit about Asset Care 2024 and how it offers more than simply money to pay for care. I shared the care benefit concierge (claims concierge), coordination of benefits provision, and caregiver consultant for those who elect informal care.
One thing that I neglected to include in the Fridays with Fisher post was the definitions of specific types of care.
Informal Care is typically unpaid assistance that is provided by untrained family member, friends, neighbors, etc. Informal care is the most common form of care and, more often than not, goes unpaid. The advantage of such care is that it is generally cheaper (financially) than formal care. The disadvantage is that it can lead to caregiver fatigue and due to lack of training a lower quality of care.
Formal Care is paid care provided by professionals, such as nurses, home health care aides, and therapists. This care can be delivered at home or in a facility like a nursing home or assisted living facility. Formal care, while generally more financially costly, provides support and services by train professionals reducing the physical, mental, and emotional cost for the family.
An important thing to remember about formal care is that it (care) is not limited to facility-based care. Formal care INCLUDES home-based care.
Remember, utilizing long-term care support & services does not constitute a plan. Using them is simply a byproduct of aging. That care still needs to be managed and paid for.
With this in mind, every client conversation needs to include an extended care (long-term care) planning discussion. For too many years, this aspect of retirement planning has been neglected.
OneAmerica Financial has produced the consumer-approved Step by Step Guide to Receiving Long Term Care as a tool to help further the planning discussion. In addition to that, the Care Planning Worksheet (also consumer approved) can serve as a blueprint for a planning conversation. There is also the consumer-focused LTC Planning Webpage from OneAmerica Financial where more information and tools are located.
One final point, circling back to types of care – informal & formal. Asset Care 2024 will provide funding for either. If you want to know more, please contact your BGA, FMO, or IMO. Or, you can speak with my internal Nick Angelov at (844) 623-4251 or nick.angelov.isp@oneamerica.com
Fridays with Fisher 