Retirement planning should include several subcategories. While they vary from family to family estate and financial planning are two of the most common. Some people even choose to set up a fund for post-retirement traveling. Long-term care costs and planning are essential to any retirement strategy. This is also an area which families often overlook.
Long-Term Care Expenses
No one wants to think long-term care might be in their future, however, it is crucial to include these expenses. Pre-planning funerals is a common practice, but those same people fail to consider there may be costs between retirement and death. A life insurance policy can cover funeral arrangements and at least a portion, if not all debt which might be left behind.
The fact is that many families spend great sums of money on medical care for elder members. Fewer and fewer families place elder members in assisted living or care facilities every year. Today, many of them opt for in-home aging and care instead.
The Department of Insurance and Financial Services reported that more than $100,000 was spent on assisted living in 2016. This figure does not include physicians bills, hospitals expenses, testing or prescription medications. During the same year $40,000 on average went to home health care per family. Those who required nurses and home visits paid much more.
Prepare for the Unexpected
It is impossible to predict exactly how much long-term care will cost in the future or if it will even be needed. It is crucial to plan for the future while hoping for the best. Pre-planned funeral arrangements and life insurance policies can help significantly. Those alone will not be enough if illness suddenly strikes down the road.
The cost of long-term health care often outweighs the financial burdens which would be left behind. Traditional retirement plans and government benefits are not realistic options either. They simply do not provide adequate means to ensure long-term health care costs can be met.
The first step is to consider how much may be needed for future medical expenses. Many individuals end up deep in debt simply because they did not expect to get sick and were not prepared for the high cost of medical care. Long-term care insurance is available to help ease the burden should the situation ever arise.
Fear of wasting money on something which is never needed is a common concern. It is important to understand that long-term care insurance is as essential as auto and home insurance. It is to protect loved ones in the event of a catastrophic loss everyone hopes will not occur. It is imperative to choose a solid policy and plan to ensure the burden of care or debt will not fall to the rest of the family if disaster does occur.
Brian F. Abramson has more than two decades of experience. Call him to discuss the necessities of retirement. Professional legal guidance can make the difference between a secure future and leaving loved ones with the burden of medical expenses.
Cited Sources:1. https://www.michigan.gov/documents/difs/Long_Term_Care_523691_7.pdf