Planning Ahead for Cognitive Decline: What to Put in Place Now
Planning ahead for cognitive decline means putting decisions in place while you can make them yourself: naming someone to handle your finances and health care decisions, recording your wishes for care, and deciding how you’d pay for help. Talk with an attorney about the legal documents your state requires.
Why plan while you’re able?
Legal documents generally require that you have the capacity to understand and sign them. Planning early keeps the decisions with you.
Which documents should you discuss with an attorney?
A durable financial power of attorney, naming someone to manage your finances
A health care power of attorney, naming someone to make medical decisions
An advance directive or living will, recording your wishes for medical care
A HIPAA authorization, allowing named people to access your health information
A will or trust
Requirements vary by state. An attorney can tell you what applies to you. The National Institute on Aging also has a guide to advance care planning.
What should you write down beyond legal documents?
Where you want to live, who you’d want caring for you, and what matters most to you day to day. Putting it in writing, even informally, helps the people who may someday decide for you.
How does cognitive decline affect care costs?
Cognitive decline can mean needing supervision for a long time, which can make care costly. With the coverage we offer, benefits can begin when a licensed health care practitioner certifies that you need substantial supervision because of severe cognitive impairment. Because a diagnosis can affect eligibility, coverage is generally easier to get before one. The NAIC notes that if you already have health problems that could lead to long-term care, such as Alzheimer’s or Parkinson’s disease, you probably won’t be able to buy a policy. (NAIC Shopper’s Guide)
Who should know your plan?
Staying Power is a licensed insurance agency that helps people plan how they’d pay for care while they can still make those decisions themselves.
Share your wishes with the people you’ve named, and with your family. Get started to see what care costs and how to fund it.
Related reading: What to Expect in Long-Term Care Insurance Underwriting, When Should You Buy Long-Term Care Insurance?, and Aging in Place on Your Own.
Frequently asked questions
When should I set up a power of attorney?
While you have the capacity to do it. Talk with an attorney about timing and your state’s requirements.
What happens if I don’t name anyone?
If you can no longer make decisions, state law determines who can, and in some cases a court may appoint a guardian.
Can I get long-term care insurance after a dementia diagnosis?
It’s generally difficult. A diagnosis can affect eligibility, which is one reason people plan earlier.
