Risk or adversity that is just out of my line of sight is something I have always had trouble with. We all fear the unseen policeman who, at any moment, can provide the joy of an unanticipated speeding ticket, or the snake in tall grass that might catch us unprepared.
On the other hand, it just seems to me that the emotional and financial hardships brought on as the result of a long term care event should be immediately visible and at least part of our permanent presence of mind.
Oh well, pardon the momentary lapse—I know better than that. Maybe it’s not the fact that the risk is barely visible with the distance of age, maybe it’s just something that is genetically imprinted. Maybe we are hard-wired to ignore our own future potential frailty. Maybe its simply the incredibly frightening prospect of being dependent on others and the uncertainty of that possible eventuality that interrupts our reasoning ability and prevents us from taking direct action to protect ourselves and our families.
Let’s begin with the biggest iceberg of Titanic proportions! In 2011 we spent $210.9 billion on paid care—but it is estimated that the real cost to us was an additional $450 billion for unpaid care. Pardon me, but I must suggest that even unreported care could be grossly underestimated.
Admitting dependence may be another of those regressive historical genetic afflictions. Darwinism at its most virulent: Only the behaviorally independent survive. Whatever the underlying cause, not admitting you need help and then systematically ignoring any attempt at planning could at least indicate the level of irrationality at the source of the affliction.
Genworth has recently completed some consumer research that sheds some light on the dis-connect with a new study, “Beyond Dollars 2013.” A number of the findings were enlightening. Long term care claims in an institutional setting may be of a fairly short duration; however, the same cannot be said for caregivers from the survey who reported that “43 percent of their loved one’s need for care lasted three to four years.”
The total impact on a caregiver’s life has never been adequately defined. Every caregiving situation is different, with different levels of physical, mental or medical needs. The hidden cost to careers is grossly underestimated. According to the Genworth survey, the average weekly time requirement to provide care is 21 hours. Over half the respondents reported loss of income as a result of caregiving responsibilities. Two-thirds had missed time at work, and there were a substantial number of lost vacations/sick leave and missed career opportunities.
The impact on personal time by care provided was also great. The majority reported that caregiving impacted personal relationships and general well-being. More than a third of caregivers reported that their responsibilities had impacted negatively with their spouse, created a negative impact on their family in general, affected their personal health, and created depression. More than half of care recipients themselves also reported additional stress. The point is that caregiving does not take place in a vacuum.
Family and friends should be involved early in the planning process. From where will the money needed and the time required appear? Talking about the who, what, where and when of caregiving may be unpleasant or uncomfortable—Do it anyway!
Other real costs may also be hidden from view. It’s not just the direct provider cost or the discounted and presumed family assistance, it’s the “incidentals.” Both caregivers and care recipients reported a severe economic impact on the small quality-of-life spending in which we all engage: Discretionary spending had been curtailed by 58 percent of caregivers and 77 percent of care recipients. Genworth’s research indicated that care providers spent on average at least $8,000 out of their own pockets to help with care.
Here we are again, back to the beginning of our most popular persistent circular argument. Begin by helping your clients recognize that there is an iceberg—and it is a really big iceberg—floating in their path, specifically to cause great harm. But what you see is not what you often get—there are hidden dangers lurking just below the surface. Have they had their lifeboat drill instructions, and is their lifeboat ready for turbulent waters? And somewhere along the conversation of life boat planning you might want to mention insurance.
Other than that I have no opinion on the subject.
