How To Tackle Financial Planning for Long-Term Elderly Care

Sustainable funding for long-term care requires careful financial planning that covers the assets your loved one has available, the grants and funding initiatives they qualify for and a deep dive into the care options open to them.

The process can be daunting and overwhelming as there are many strands of the plan to think about.

At Primrose Lodge Weymouth, we have stood with families to put financial plans in place for many years. Our staff understands the complexity of your unique situation and the various funding requirements needed, so we offer a knowledgeable ear to listen and a helping hand to guide you through the process.

In this blog, we discuss the different aspects of financial planning for long-term care, providing an overview of everything you need to think about so you can tackle it with confidence.

What Are The Costs Of Care?

Before diving into the process of creating a financial plan, you need to know what costs will need to be covered.

Of course, care costs will differ depending on whether you are looking into at-home care or a care home.

Costs for a care home will typically cover:

Renting the room
Care provided
Food provided
Use of the facilities and activities

Costs for at-home care will include:

Care provided

No matter what care you opt for, there are likely additional services needing funding that sit alongside the care costs.

These can include:

Chiropody
Hair care and grooming
Laundry
Supply of toiletries
Outings and trips

Getting To Know Assets Available

Once you understand what costs you will likely be paying, you need to start by looking at your loved one's available assets. This is a pivotal step because it will allow you to see what might be realistic based on what is readily available, and this will dictate the additional funding your loved one is entitled to.

Assets you need to include in this step include:

Savings
Pensions
Investments
Equity in property

Working out what these add up to will allow you to work out a budget that your loved one will be able to afford based on what they have.

Research Financial Assistance

There are a number of government initiatives and funds available to help you and your loved one pay for long-term care.

You will need to complete thorough research into these options because they each have different criteria that need to be met. They also have lengthy application processes and forms, so it is a good idea to start these as soon as possible to give you the best opportunity to have the funding in place for when you need it.

Funding options available are:

You don't have to go through this process alone as there are many professionals equipped with the knowledge and expertise on these.

Reach out to:

Financial planners
Solicitors from The Society Of Later Life
Age UK
Local Authority
Money Helper

Immediate Needs Annuity & Private Insurance Options

Additional options are available too.

While not overly popular, there are a few providers of long-term care insurance. These policies require you to pay a monthly premium. When you need care, the provider will pay an agreed amount to cover all or parts of your care.

If interested in one of these policies, you need to take a look into what is and isn't covered, as they don't always cover everything your loved one might need.

Additionally, these will likely require you to pay into the policy for a set time before claiming the money, meaning they are only suitable if planning in advance.

An alternative option is a Care Needs Annuity, also known as an Immediate Needs Annuity. These work by you or your loved one paying a large upfront sum to a provider. The provider then pays a set amount regularly to pay for the care being received. Usually, it can be worked so that the money goes directly to the care provider, taking the stress away from you in having to forward the money each month.

While this money is guaranteed for the rest of your loved one's life, the initial payment can be expensive.

Family Contributions and Support

Sometimes, the funding available to your loved one and their assets don't cover every aspect of care. This can especially be the case if they require more care in later life or if they like a one-off treat such as a hairdressing appointment.

In this case, family members can "top-up" the payments to ensure everything is paid for.

Most care homes will offer this, and it can be worked out between the care home manager and yourself throughout the admissions process.

Legal Documents To Put In Place

Part of the financial planning process should also include covering legal aspects.

Wills and Powers of Attorney should be discussed and put in place for your loved one.

This will enable you and your loved one to protect their assets and dictate what happens to them in various situations.

Future Proofing For Care Need Changes

The care needs of your loved one are likely to change as they get older, and additional care might come at a slightly higher cost.

This means you need to prepare for care cost increases over the long term. With this in mind, when creating a financial plan, you should consider how you will pay any extra costs, perhaps keeping an emergency fund back for these events.

Let Professionals Help

As we said above, you don't have to go through the process of creating a financial plan for long-term care on your own.

There are a number of professionals who are able to provide expert guidance when applying for funding options, evaluating assets and preparing for the future.

Working with professionals will enable you to build a future-proof, personalised plan that is sustainable and will cover the care your loved one needs.

When you visit Primrose Lodge Weymouth, we can discuss your various options, pointing you in the right direction for help and assistance. Throughout the admissions process, our compassionate staff will be on hand to untangle any confusion you might have and provide any information needed for applications or plans.

Call us on 01202 429514 or arrange to see us on our online contact form.

We are always around to provide help with a smile, so don't hesitate to get in touch.