Beyond the Bottom Line

After surveying more than 1,000 respondents who either personally receive long-term care or provide it to a loved one, a recent study reports that the consequences of long-term care extend far beyond the care recipient’s wallet.

Genworth’s “A Way Forward: Highlights from Beyond Dollars 2013” identifies a slew of negative impacts on informal long-term caregivers, many of whose careers suffered as a result of related care needs: 53% had lost income due to related demands; 43% have had to work fewer hours; and 33% had missed career opportunities. Similarly, a large number reported a drain on their personal lives: 47% experienced negative feelings such as depression, while 37% indicated their relationship with their spouse or partner suffered significantly.

“It becomes a burden on society,” says Wendy Boglioli, Genworth national spokesperson. “It’s a lot of tough conversations, and people typically don’t want to go down that road. But without working with a financial planner or a long-term care specialist, they are at the mercy of other people.”

Although purchasing an insurance policy is only one of four possible ways to pay for long-term care—other options include using personal funds, using family funds or relying on the government—Boglioli calls long-term care insurance a “winning strategy” that provides a sense of certainty during uncertain times.

The care recipients surveyed in the Genworth study agree, identifying a combination of monetary and emotional concerns among the top three benefits of long-term care insurance: relief from the financial burden associated with long-term care; less strain on their family situation; and the ability to rest easier knowing that long-term care costs would be covered.

Noting that the weightiest risks people face in the U.S. today involve health care and long-term care, Boglioli takes a “the sooner the better” approach to the long-term care insurance conversation. “It’s important to see how costs have continued to rise,” she says. “Where does that money come from? Insurance plays a very key role.”

Jacquelyn Connelly is IA assistant editor.

SIDEBAR: Civic Duty

Some see the discussion about long-term care as a matter of social conscience.

When Boglioli and her six siblings placed their mother in a nursing home three years ago, the $8,000 price tag proved more affordable than what it would have cost to access adequate in-home care. While the cost is steep—and getting steeper—it’s not the most pressing concern facing the family.

“My mother doesn’t worry one minute of her day about it,” Boglioli says. “We worry. And that’s where the ‘beyond dollars’ and the community and society come in.” —J.C.