Preparing Financially to Support Dignified Dementia Care

The emotional toll of dementia is often matched by its financial weight. From in-home support to residential aged care, specialist appointments, and medications, the cost of long-term care adds up quickly. For families already navigating uncertainty, these expenses can create serious stress.

Understanding insurance options and planning for care costs in advance is one of the most practical and loving things families can do. With clarity and preparation, individuals can receive the care they deserve—without placing a sudden financial burden on their loved ones.

Digital tools like Evaheld allow families to securely store financial documents, preferences, and legal plans within the Evaheld Legacy Vault, ensuring everyone stays informed and aligned.

Why Financial Planning Is Essential in Dementia Care

According to Advance Care Planning Australia, early planning improves quality of life, reduces out-of-pocket expenses, and ensures individuals have a say in how their care is delivered—even if their cognitive abilities decline.

Without proper financial planning, families may face:

• Out-of-pocket costs for aged care, home help, or private therapy
• Limited access to dementia-specific services
• Delays in receiving supports due to paperwork or eligibility confusion
• Guilt or disagreement over spending priorities

Understanding Your Insurance Options

1. Health Insurance

In countries like Australia and the UK, public health systems cover some dementia-related medical costs.

However, private health insurance may provide:

• Hospital cover for private facilities
• Extras cover for physiotherapy, psychology, or podiatry
• Rehabilitation or home nursing support
• Quicker access to certain procedures

It’s important to check:

• Waiting periods
• Annual limits
• Dementia-specific inclusions or exclusions

Use Evaheld to store your private health policy documents alongside care preferences for easy reference.

2. Aged Care and Home Care Packages

In Australia, My Aged Care supports subsidised:

• Home support services
• Residential care
• Respite care
• Dementia advisory services

Dementia Support Australia helps families apply for and coordinate these supports based on assessed need.

Include these services in your care cost forecast and keep assessments or approvals in the Evaheld Legacy Vault.

3. Long-Term Care Insurance (where available)

In some countries, like the US, long-term care insurance covers services such as:

• In-home support
• Assisted living
• Memory care units
• Personal care aides

Premiums are more affordable when purchased early—ideally before a dementia diagnosis. These policies may have caps or exclusions for pre-existing conditions.

Budgeting for Dementia-Related Costs

Use a financial care forecast to estimate:

• Weekly or monthly in-home support fees
• Residential aged care bond or daily payments
• Allied health or therapy sessions
• Medical equipment or home modifications
• Legal planning or guardian expenses

The Online Will Blog suggests integrating care cost planning into estate and will documentation to align financial goals with care wishes.

Funding Support for Carers and Families

Carers may be eligible for:

• Government allowances or benefits
• Employment leave entitlements
• Travel subsidies for appointments
• Tax offsets or deductions

Nurse Info offers a list of government benefits for family carers supporting someone with dementia.

Use Evaheld to document any applications or approval letters, and share access securely with co-decision makers.

Including Financial Instructions in Advance Planning

Your Advance Health Directive can:

• Appoint a financial decision-maker (power of attorney)
• Specify spending preferences (e.g. home care vs facility care)
• Include spiritual or cultural values influencing care costs
• Connect financial planning to emotional and legacy goals

Tools like Family Legacy Series can guide families in expressing values around money and care with sensitivity.

Reviewing and Updating Your Plan

Update your financial and insurance strategy:

• After diagnosis or reassessment
• When care level or location changes
• Upon changes in family finances
• Every 6–12 months to check benefit usage and new services

The Evaheld blog highlights real examples of families who saved money and improved care simply by reviewing their plans proactively.

Supporting the Sandwich Generation

Adults supporting both ageing parents and children often face financial strain. A clear care cost plan:

• Reduces the burden of emergency expenses
• Ensures care aligns with long-held wishes
• Allows for fair sharing of responsibilities among siblings
• Prevents miscommunication around inheritance or contributions

Advance Care Planning Australia reinforces that early financial transparency protects family relationships and outcomes.

Final Thoughts

Dementia care is about more than medical treatment—it’s about comfort, meaning, and security. Financial planning provides the foundation to honour all three.

With the right insurance, a realistic budget, and secure digital tools like Evaheld, families can move forward with confidence—knowing they’ve safeguarded both dignity and stability.