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An AARP report published in July of 2015, shed light on the growing need for caregivers in the United States. Valuing the Invaluable discusses the costs to the children and families of the elderly and disabled who need in home care for assistance with the daily activities and chores that most of us take for granted.
The first of the Baby Boomers reached retirement age (65) in 2011 and approximately 10,000 people are retiring every day. Americans are also living longer. On average the life expectancy of someone who turns 65 today is another 20 years. As our population ages, the need for family caregivers and skilled in home care services becomes an increasingly important issue.
Economic impact of in home care
According to the study done by the AARP, there were about 40 million family caregivers in 2013. Using a conservative estimate that each caregiver provides 18 hours of care per week, and multiplying the figures (40 million x 18 x 52), you come up with a bit more than 37 billion hours of care. When multiplied by an average hourly wage of $12.51, the economic value of family caregivers is about $470 billion a year.
How much is $470 billion?
It is hard to fathom just how big a number $470 billion actually is. It is more than all of the Medicaid spending ($449 billion) in 2013, and about the same as the total worldwide sales of Walmart ($476 billion). If you divided up that amount and gave an equal share to every person in the United States (316 million population), each person would get a check for $1,500.
The stress of providing in home care assistance
Taking care of an elderly parent or a disabled family member is not something one does for money. However, money is needed to take care of the most vulnerable segment of our population. The majority of family caregivers need to work to make a living and then work without compensation to provide care for their family member. They may also need money to hire a skilled care provider when they can not be around to provide needed care, While there is always going to be stress when taking care of an aging parent or disabled sibling, you may be able to alleviate the financial stress.
Sell your life insurance policy
A life settlement company can help you sell your life insurance policy for significantly more than its cash value so you can have the money to pay for home care services, durable medical equipment and other things that could help make your life more comfortable. Think of a life settlement like reverse life insurance. You get money while you are alive and you never have to pay another premium.