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5 reasons to sign caregiver agreement

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Keep care and money in the family
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Keep care and money in the family © Vibe Images - Fotolia.com

Keep care and money in the family

By opting for a family caregiver agreement, much of a loved one's care is provided by a devoted family member.

"Very often, people would be much happier having a family member take care of them than a stranger," Matthews says.

And the money a family would pay to a home health agency for aides to perform similar services would be paid to a family caregiver instead.

"The money the parent pays stays in the family," Matthews says.

Often, a family caregiver may need the financial compensation, especially when committing to a long-term arrangement.

"People who provide care usually are making some kind of sacrifice," Krooks says. "Some have a job, and this is a second job. For some, this is their only job."

Care recipients with long-term care policies may want to check the fine print of their plans.

Some long-term care policies, such as those that pay lump-sum "indemnity" benefits, may be used to pay family members who provide care, according to Jesse Slome, executive director of the American Association for Long-Term Care Insurance.

"The newer policies today offer cash-alternative benefits that would pay for a family member," Slome says.

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