Financial Information
Long term care Insurance
The landscape of long term care insurance is ever changing. Initially coverage was available with unlimited term limits, compounding inflation adjustments, waiver of premium riders, and minimal annual cost increases. In recent history low interest rates, increased longevity, lower than expected policy lapses, and the spike in health care costs, have all contributed to insurance companies adjusting their options for new clients. While traditional long term care policies still exist, less insurance companies offer coverage, the benefits may not be as comprehensive, and the costs have gone up dramatically. Hybrid or Asset based long term care policies are another option, combining some features of both long term care and life insurance.
If long term care insurance is available, it would have been purchased prior to a diagnosis. These policies vary widely in their coverage types and amounts, however would prove very helpful in covering care costs and protecting the assets of a patient with young onset dementia. If insured, contact the insurance agent or company to review the necessary steps in beginning a claim.
Social Security/Disability Insurance
Patients with early onset dementia who have been in the workforce and have Social Security work credits should apply for Social Security Disability. Be prepared to provide medical and other data.
For more information and to begin a claim, visit https://www.ssa.gov/disability/
If the patient is currently employed, it is possible employer sponsored long term disability insurance coverage is available. As an alternative, if self-employed or otherwise not covered, a private pay disability policy may have been purchased. In either instance, long-term disability will begin after a set timeline, usually three to six months after a disability has occurred. This insurance typically provides a percentage of income as noted in the policy. It is possible to receive both long term disability benefits and Social Security disability benefits.
Asset Management
When young onset dementia strikes, the patient and/or spouse will have impactful changes to their financial lives and future planning. In addition to the loss of work, cost for care such as ongoing medical treatment, adult day services, in home care, and residential care will now need to be funded in some capacity. If assets are available, such as investment accounts, 401(k)s, 403(b)s, or other retirement plans, and property/real estate, these will all play a part in covering loss of income and additional expenses for care. Working with a financial advisor may provide clarity and a professional approach, giving the family peace of mind and allowing the patient and spouse more time to focus on healthcare, family, and other areas of their lives.
Some areas a financial advisor may assist with:
- Create or adjust cash flow analysis and budget
- Adjust investments to meet current needs and changing time horizon
- Generate an income stream with special attention to asset type, tax ramifications, and portfolio longevity
- Develop a plan in efforts to financially protect the spouse of a patient
- Coordinate with other professionals involved, such as attorneys and accountants
