Caring for an aging loved one at home can present new and unexpected challenges. Family caregivers must manage medical needs and expenses while preserving the autonomy and dignity of those they love. Often this means taking on the additional tasks of managing a loved one’s financial affairs, obtaining power of attorney, and hiring and supervising in-home care workers.

For busy family caregivers, it can be easy to overlook the insurance and risk-management aspects of home elder care. Fortunately there are a few steps you can take to be sure you, your loved one, and your home are protected.

What Policies Does Your Loved One Have?

For those unaccustomed to handling a loved one’s financial affairs, it can be hard to know where to begin. One place to start is to determine what polices your loved one has. If your ailing loved one is a spouse, you may already be familiar with their health and homeowner’s policies—but for a sibling or parent who does not live with you, locating the proper documentation can be a challenge. Sometimes your loved one can help, but if their cognition is impaired by Alzheimer’s, stroke, or other disorder, you may have to do some detective work to locate their policies or the contact information for their insurance agent. Once you determine what coverage they have, you can better assess what additional coverage might be needed, for example, to pay for a full- or part-time in home health care aide.

Home Health Care Workers in the Home

As our population ages, increasing numbers of elders are choosing to remain in their homes for as long as possible. Often that means having an in-home care worker visit regularly, or even having a full-time aide provide around-the-clock care. Regardless of the level of the home care aide’s involvement, it’s wise to check with their agency to determine what background checks have been done, and if the agency provides workers compensation for their workers and their own liability insurance.   For example, if a home health worker sustains an injury while on the job, to what extent, if any, are you or your loved one liable? You may also want to check your loved one’s homeowner’s policy to determine the extent of their insurance v coverage.  If care is being provided in your home, be sure you have proper coverage in case a care worker sustains an injury on your property. Agencies should cover their workers while off-site, but it’s prudent to confirm the details.  And remember, if the aide will have access to your loved one’s car, be sure their motor vehicle records have been checked.

Long-Term Care Insurance

Long-term in-home care is a challenge faced by an increasing number of families. The American Association for Long-Term Care Insurance estimates that 7.6 million Americans currently receive in-home care due to illness, disability, long-term health issues or permanent disability. Services can range from companionship and meal preparation to administration of meds, assistance with physical exercise and rehabilitation, and coordination with physicians and other health care professionals to guide and modify care plans. Long-term care insurance can help to reduce the costs—which currently range from about $14 to $28 per hour for an average of 20 hours per week per patient, but are expected to increase significantly. Purchasing long-term cafe insurance before your loved one needs in-home health services can significantly reduce the cost. Your insurance agent can best help you find the plan that’s best for your family.

Power of Attorney

For a loved one who is no longer able to make critical health and financial decisions, it may become necessary for you, as a family caregiver, to obtain medical or legal power of attorney (or both). Most attorneys provide basic services for obtaining durable power of attorney, but the process is easier if your loved one is still cognitively competent at the time of the agreement. If you must have a loved one declared medically incompetent against their wishes, a physician’s assessment will likely be required to make that determination.  To ensure that your loved one’s specific care wishes are honored, you may also want to check whether your loved one has any advanced care directives or do-not-resuscitate orders in place to address end-of-life or hospice care wishes.

We hope these tips help you make clear and informed choices about your loved one’s in-home care and insurance liability.  Magis is here to help you navigate many of these challenges, so don’t hesitate to ask for our advice.