Long Term Care

Friday, May 23, 2008

Don't tell anyone, but I just turned 47. Closer now to 50 than 40 - that's hard to wrap my (very) young mind around. I've been a part of the Sandwich Generation - the generation of adults who both raise children and provide care for aging parents. My parents have now passed away, and I'm back to being a mother to an active 11-year old, a wife and a career-minded professional who likes to think I am planning ahead, but have I done the proverbial "CYA"? I am putting money in my 401(k), setting aside resources for my child's college education, but have I covered all the bases?

Let me tell you a quick story. About 20 years ago, my mother retired and was persuaded to move back to this area. One of my friends - we'll call her "Lori" in this story- was caring for her mother at the time, who was losing her battle with cancer. Over a chilled, imported beer one evening, Lori suggested I look into an insurance product for my Mom called Long-Term Care (LTC) Insurance. She said she had been fortunate that her mother had purchased such a plan, as it was helping to protect her mother’s assets by covering many healthcare-related costs associated with her illness.

I listened and then gracefully moved on to the next subject. After all, Mom was only 65, and relatively healthy. I was in my late 20s, no kids, care-free, and still planning on living forever - as would my parents, of course. Except for being a smoker, Mom still was living on her own, with only a few health concerns ...

Time passed, things changed - I even had a baby. Mom aged. She got cancer. No Long-Term Care Insurance. My brother and I cared for her as best we could - from grocery shopping to bill paying, to taking Mom to appointments. Mom's health declined.

Fortunately, Mom had some assets, and with those, we were able to allow her to remain comfortable at home rather than in a nursing facility or hospital, with home health care - at a cost of about $1000 per week. For more than a year, we had an angel of a home health care provider who fixed lunch for Mom on most days, did light housekeeping, and also spent most nights with Mom. Let me repeat - at a cost of about $1000 per week.

Mom passed away a few years ago, and Dad quickly followed. Older, wiser (and with the benefit of 20/20 hindsight), I reflected back to Lori's and my conversation. Wish I had the foresight at that time - perhaps I could have persuaded my parents to look into LTC Insurance. It might have relieved some stress, and certainly Long Term Care Insurance would have reduced some of the expense of Mom's (and then Dad's) home health care.

As they say, I'm not getting any younger - perhaps it is time to heed the advice of my long-time friend. I will call my financial professional and apply for Long-Term Care Insurance. After all, while my mind is still young - on most days, to be painfully honest, I'm no longer as young as I once was. It is time to plan ahead. If I am lucky, I'll never need Long Term Care; and better still, maybe I can reduce some of my child's future concerns by protecting my assets now.

Dorothy Douglass, VP, Manager of Human Resources
Mutual Federal Savings Bank