Prepare for end-of-life care when you’re young | Opinion

Editor’s note: This is the fourth in a series of columns about seniors and their finances with information from local experts in the field and experiences of people dealing with financial hardships in their later years.

Having enough money to pay for a rental residence in a senior facility, or “buying in” for life care in a senior facility, is a reality confronting seniors in their late 80s and 90s throughout America today.

“My planning for this stage of life began many years ago when I was still working full time,” said Leonard Nadel, who lives with his wife at Vi at Lakeside Village Senior Living Facility in Lantana.

“Perhaps because both my mother and mother-in-law were in nursing homes after suffering strokes, I realized the need for early planning. Starting to plan at age 60 or 65 is too late.

“I purchased life insurance with a dual purpose. In the event of my death, it would provide my wife with assets to be able to afford to move into a facility without having to ask our children for help,” he said. "Similarly, the accumulating cash in the policies provided the cash for us to buy in.

"Planning for end-of-life living must start when we are young,” Nadel said. “Too many people reach retirement age and wonder why they cannot afford to retire; same thing in planning for buying in (or renting) at an independent or assisted living home.”

Michael R. Teller, president of All Vest Associates who runs the Center for Long Term Care Planning, has specialized in longterm care planning for more than 30 years. He provides a custom-made plan to individuals.

“I help seniors and their family members understand their longterm care protection options, evaluate and compare their best choices, and secure the program that works best for their personal circumstances.

"As a specialist in longterm care planning, I have assisted many of my clients prepare for their later years. Most solutions are insurance-based and provide cash flow to help them meet their living expenses. Longterm care insurance plans provide a cash flow when their living arrangements require some form of ongoing personal assistance. The cash flow from these insurance plans is intended to pay all or part of their costs of home care, assisting living and nursing home care.

Other solutions, such as a Single Premium Immediate Annuitization, can provide an ongoing monthly cash flow that the receiver cannot outlive. An SPIA is activated much like a pension, whereas payments can be fixed and guaranteed by the insurance company and continue to pay for the individual’s lifetime, with or without survivorship payments. This helps reduce one’s concern that they may outlive their money. I’ve had many clients utilize and activate one or both of these concepts over the years and it was truly a financial lifesaver for them.”

Mort Mazor is a veteran living in Boca Raton.

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