Although many associate elderly adults with being frugal, the truth is that they too can make financial mistakes. These particular mistakes can lead to financial disaster, especially when we consider the increasing lifespan of today’s seniors. That said, we wanted to share some of the top financial errors made by seniors so that families can help protect their aging loved one’s financial future.
- Dropping “Unnecessary” Policies – There are insurance policies for virtually everything. Seniors or their families feeling a financial crunch or looking to save money may drop these so-called unnecessary policies, such as a life insurance or a long term care insurance policy. This is not a good idea. These policies can be used to help pay for expenses that may arise down-the-road, especially if health is a concern. For example, some policy holders may allow the senior to cash-in or borrow from life insurance in order to pay for future care such as at-home care in West Bloomfield.
- Failure to Plan Ahead – An aging loved one may feel as though it is too late to plan for their finances and therefore, no action is taken until a crisis arises. The elder may not have designated someone to oversee their finances in the event that they are unable to do so, which can create a serious dilemma, especially if the senior develops dementia or another condition that may affect their ability to make financial decisions. The family may then have to go through several legal channels and by then, it may be too late to save a home or re-instate lapsed accounts or insurance policies.
- Liquidating Assets Too Quickly – This is a financial mistake that is commonly made by seniors. In order to pay for care, many seniors may be inclined to liquidate assets before they may actually need to. In all reality, this should be a last resort. There are several options that may be available to assist seniors without immediately having to cash in on personal property. Many people assume that they are not eligible for these programs or do not know that they exist until they have already tapped out all of their assets.
If you are concerned about a loved one’s future finances and health and wellbeing, know that it’s never too late to start planning. Request free information about home care services from Home Care Assistance of West Bloomfield. Along with flexible hourly and live-in home care in West Bloomfield, we offer specialty care services such as care for seniors with dementia, Alzheimer’s and Parkinson’s. Call 248-283-0835 today and explore your options for how to pay for long-term home care and promote a higher quality of life for your aging loved one.