Comprehensive Planning. Lifelong Solutions.

Many employers provide back-up elder care

By Hook Law Center

Hundreds of New York employers provide back-up elder care, designed to help employees stay at work when an unexpected problem arises with elder care.

Employees who have registered for back-up elder care can call a care organization when they face an unexpected interruption in elder care. Within hours, the organization will send a home health care aide to the elderly person’s home. Employers work with agencies who screen and train their caregivers.

A sudden change in a parent’s health, logistical issues from the usual home health aide, or a family caregiver’s competing responsibilities can all lead to a gap in elder care. Without back-up elder care, workers are likely to miss work for days or longer. With back-up care, both the elder’s care and the employee’s work life can continue relatively seamlessly.

Plans vary, but most allow employees to use the service 10-20 times a year. Employees pay for part of the service — usually about $6.00/hour — while the company covers the rest.

This benefit makes fiscal sense for companies, as a growing number of American workers now care for aging parents. That trend will continue in coming years, as the Baby Boomer population reaches retirement age and life expectancy continues to stand at an all-time high.

Posted on Thursday, March 26th, 2015. Filed under Long-Term Care.

How your life insurance policy can pay for long-term care expenses

By Hook Law Center

A number of companies, such as Life Care Funding, will purchase a senior’s life insurance policy from him or her. In exchange, the company provides a portion of the face value of the policy to individuals facing high long-term care costs.

These “life settlement” companies purchase the policy from the policyholder, then continue to pay the premiums. They make a profit by collecting on the policy after the policyholder’s death.

In addition to acquiring cash that can help with the immediate costs of long-term care, selling one’s life insurance can make it easier to qualify for Medicaid. Once the policy is sold, it no longer belongs to the person who sold it, so individuals do not need to turn it over to qualify for Medicaid.

As people age and earn less income, it is not uncommon to allow life insurance policies to lapse, rather than pay the premiums. Most life insurance policies only have value after death, with no cash surrender value. That’s why selling the policy can make sense for seniors who face high care costs, do not have dependents who would rely on the life insurance after their passing, and do not have family members who can help out with the cost of the premiums.

Life settlement companies make an offer on a policy based on the person’s age and medical history, along with the face value of the policy. Depending on the company, this offer can be anywhere from 20 to 45 percent of the original face value.

Although life settlement companies may benefit some seniors, they are still a relatively new and tiny industry, with little regulation in most states. Families considering life settlement should carefully weigh their options and financial situation before deciding to sell.

Posted on Monday, March 23rd, 2015. Filed under Estate Planning, Long-Term Care.
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