Money magazine sits down with Madeleine Smithberg, co-creator of “The Daily Show” and a talent coordinator for “Late Show with David Letterman,” to discuss a topic she believes is not talked about enough: long term care.
Smithberg took on a challenge that many would not consider. She cared for not just one but both of her parents as their health rapidly declined. The emotional and financial stress of taking care of a loved one can more than double when looking after both parents. Smithberg tells Money Magazine, “It’s like having toddlers… The biggest challenge of all is holding onto your patience.”
A study conducted by Northwestern Mutual reveals that 59% of Americans feel that taking care of two elderly parents would be more difficult than looking after two toddlers. It was also reported that 38% of the survey participants said they have not planned for handling the financial burdens of providing care to elderly parents.
In her interview, Smithberg offers 4 things that can save you from going broke while looking after both parents:
- Long-Term Care Insurance: Long term care insurance provides coverage for nursing home, assisted living and in-home care costs. LTCI can protect your assets against the high cost of a potential long term care event.
- Have the Talk: It is important that you have a conversation with your parents as to what action should be taken if a long term care event occurred. Make sure to establish who has the power of attorney and document what your parents will and will not want during a life-threatening health crisis.
- Consider a Reverse Mortgage: This option allows homeowners aged 62 and above to borrow against their home equity and to receive a lump sum, a series of monthly checks, or a line of credit that can be tapped as needed. The upside to this option is that the money that the bank is giving to you can be used to cover costs for in-home caregivers; however, the downside is that the home will eventually become the property of the bank.
- Get Help: As a child, you may think that it is your duty to provide care to your parents when they need it. But it is important to reach out for help when you cannot handle everything. There are case managers who can be hired to handle certain aspects of providing care. This includes but is not limited to scheduling doctor’s appointments, dealing with insurance, or finding a good nursing home or in-home care.
Make sure to start planning now to protect you and your family. By doing so, you can save your family from emotional and financial stress during an unexpected long term care event.
