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The Costs of Alzheimer’s: Symptoms and Financial Strain

written by Lydia Chan


What is Alzheimer’s disease? 


According to a study conducted recently at the University of California, Los Angeles, nearly 50 million Americans are dealing with the early stages leading to Alzheimer’s disease today. Alzheimer’s disease is a progressive brain disorder and the most common type of dementia, accounting for 60 to 80 percent of cases.


The majority of people with Alzheimer’s are not diagnosed until they are over the age of 65. Diagnosed before then, it generally referred to as early onset Alzheimer’s. While there is no cure for the disease, lifestyle changes and treatments can delay symptoms. 



Symptoms of Alzheimer’s disease are mild during the early stages. The patient may experience some cognitive impairment such as short-term memory problems and difficulties with solving problems such as math equations. Other early indicators of Alzheimer’s include misplacing items and an inability to retrace steps. It may take longer for the patient to complete normal daily tasks. They may seem “spacey” and lose track of time or conversations. The patient may exhibit mood or personality changes and withdraw from social activities they previously enjoyed. 

As Alzheimer’s disease progresses, it becomes more and more difficult for the patient to care for themselves without supervision. They may exhibit symptoms including an inability to recognize loved ones, loss of impulse control, motor problems, paranoia, and extreme cognitive impairment. Moderate symptoms of Alzheimer’s disease include sundowning -- a syndrome in which patients show high levels of cognitive difficulties as well as anxiety, agitation, and delirium in late afternoon and evening. 

In the latest stages of Alzheimer’s, patients are no longer able to care for themselves and exhibit severe symptoms including a lack of bladder/bowel control, weight loss, seizures, skin infections and a difficulty swallowing. Motor skills are diminished and the risk of pneumonia increases.  During this time, most patients are unable to live at home. As a result, they must make tough decisions about senior care or enter a nursing home. 

The Financial Cost of Alzheimer’s disease

Alzheimer’s costs Americans more than $277 billion a year and is only expected to rise. While Medicare may help cover some medical expenses associated with Alzheimer’s care, there are many costs the federal insurance program will not pay. For instance, Medicare does not cover the cost of long-term care. It will help with some custodial needs in a skilled nursing facility for a month or two after a hospital stay, but when it comes to in-home caregivers or nursing homes for Alzheimer’s patients, families are responsible for paying the bill out-of-pocket. 


Families have a few choices to look into when it comes to covering these expenses: 

  • Long-term care insurance will pick up the bill for caregiving services, but premiums are high and companies will not issue a policy after an Alzheimer’s diagnosis is made. 
  • If the patient owns property and doesn’t plan to leave it to family posthumously, they can leverage their home’s property with a reverse mortgage that provides a cash payout that can be used to pay for Alzheimer’s care.
  • Individuals with life insurance can sell their policy for a life settlement cash payout. A life settle allows the policyholder to receive more than the cash settlement value, but less than their beneficiaries would get through death benefits. A life settlement is a great choice for those who no longer have financial dependents as well as those who own multiple life insurance policies.
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Alzheimer’s disease is a degenerative brain disorder and the most common type of dementia. It generally affects seniors ages 65 and older and an estimate 50 million Americans are currently at risk for developing Alzheimer’s. The symptoms progress over time, eventually leaving the patient unable to care for themselves. While Medicare may cover some medical costs, it is not a comprehensive insurance plan. Families have to find alternative means of funding for certain treatments and custodial care. While options such as long-term insurance, reverse mortgages and life settlements are right for some people, the right option depends on the patient’s needs and the family’s wants. 

Lydia Chan

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