As you can tell, I have focused much of my Fridays with Fisher discussions on informal caregiving. This is inspired by the changes to Asset Care where informal care is covered benefit with a zero day elimination period!
To learn more about the informal care benefit with Asset Care 2024, contact my internal sales partner Nick Angelov at nickangelov.isp@oneamerica.com or by dialing him direct at (844) 623-4251.
Since there is so much talk about AI (artificial intelligence), I wanted to see what would be generated when I prompted it with “what is the cost of informal long-term care”. Here is some of what it produced.
“Informal long-term care refers to the unpaid assistance provided by family members, friends, or neighbors to individuals who require support due to chronic illness, disability, or aging. While this type of care is often seen as a compassionate and cost-effective alternative to formal care services, it carries significant economic, emotional, and social costs that are frequently overlooked.”
It then jumped into the economic costs …
“Providing informal long-term care has profound economic implications for caregivers. Many caregivers must reduce their working hours, take unpaid leave, or even quit their jobs to fulfill their caregiving responsibilities. This loss of income can be substantial, particularly for those in full-time employment or those who are the primary breadwinners.
“Moreover, caregivers often incur out-of-pocket expenses related to their caregiving duties. These expenses can include medical supplies, home modifications, transportation costs, and additional household expenses. The financial burden can be overwhelming, especially for those with limited financial resources.”
That is a pretty solid summary of the economic cost of providing informal care.
So, with this AI generated economic piece, I decided to take a look at a whitepaper from the Society of Actuaries focused on Informal Care: Measuring the Costs.
I believe that most people do not consider the potential financial implications of electing informal care. It’s more than the money of the recipient of care – it falls on their family members and the people who are around them.
A study by National Business Group on Health found:
• 75% reported calling in sick or taking paid time off
• 52% reported missing or being late to work due to caregiving responsibilities
• 33% reported higher leave incidence and duration
• 20% reported a decrease in productivity due to caregiving duties
“These costs can increase significantly for informal caregivers providing more intense levels of care …”
So – the point of this week’s post is this. Informal care, while the preferred method of receiving care, can be costly for that caregiver. It is important for everyone in the equation (mom, dad, sons, daughters, niece, nephews, etc.) to know the intentions and be prepared for that situation to happen.
Are the kids willing or able to reduce their hours at work and not jeopardize their standard of living? Are there adequate resources in the client’s pool of assets to fund a shortfall or pay for care? Are their intentions clearly articulated and shared with the people who will be impacted?
It is our job to make sure that resources are available to fund this situation. And, that starts with a simple set of questions:
When you need care, what’s your plan? Followed by – when you need care, how do you intend to pay for it?
When left to chance, the outcome is rarely a good one.
As a reminder, 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.
If you want to know more about LTC or Asset Care, 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 