Close up of older woman’s and caregiver’s hands
Many Americans underestimate the impact that caring for a loved one can have on their lives, marriage, work, and finances. In a column by Michelle Singletary, a Washington Post columnist, an “AARP study found that three-quarters of family caregivers regularly spend their own savings on caregiving expenses—which averages to 26% of their income.”1
President Biden had hoped for a tax credit for caregivers in his budget plan, but so far it has not made it past Congress’s fierce negotiations. If you’re currently providing care for a loved one or plan to do so, being aware of all of the financial realities can help save you time and money.
Here are three common misconceptions surrounding the costs of caregiving:
All in-home assistance is covered by insurance. It’s easy to assume that health insurance or Medicare will pay for care costs. However, these coverages don’t cover non-medical care. Home care that’s considered medically necessary may be covered by Medicare or a health insurance policy. Therefore, paying the cost for non-medical care provided in a home has to come from another source.
It won’t affect my financial situation. Caring for a loved one is physically and financially demanding. Oftentimes, caregivers miss work, work fewer hours, make work accommodations, and quit work when they take on that responsibility. Additionally, caring for someone in your own home can increase your utility bills, groceries, and home maintenance costs. So, while caregiving comes with positive emotional rewards, it can also come at a price.
It won’t affect my mental and physical health. Costs of caregiving aren’t just financial, but can be mentally and physically demanding. Because many who require long-term care are physically disabled, it imposes limitations on daily activities. Therefore, caregivers often perform physically-demanding tasks such as helping loved ones get in and out of bed, helping them eat, pushing their wheelchair up ramps, and more. All of the demands can lead to increased stress, exhaustion, and health problems for yourself.
Caregiving can be rewarding, but it can also be difficult and costly. With the proper tools and planning, families can mitigate caregiving costs. Reach out to us at (540) 720-5656 and let us help you address these concerns.
Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Chase Lopez joined the ILG Financial team in 2020 as an advisor. Chase is a 2016 James Madison University graduate with a degree in management. Chase has been trained under the tutelage of Dave Lopez, who is not only the founder and managing member of ILG Financial, but also is Chase’s uncle and godfather. He also enjoys working alongside his cousin, Megan, who is Dave’s daughter. Chase, as a fiduciary, believes in putting his clients interests first, and building out plans for his clients where they can have a happy and fruitful retirement. He married his beautiful wife in February 2022 and both use most of their free time chasing around their little pup, Aurora.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.