The expenses associated with the continuation of care for your loved will not simply go away at your passing. They will simply be transferred to someone else. Recognizing this, many caregivers choose to plan for funding these expenses prior to their death.
In a previous post we posited that a caregiver will likely need to use investment strategies that have the potential to continue to grow and outpace inflation well into their retirement. They will likely need to at least consider risk management strategies and products that will mitigate the erosion of their assets in the event of a death, disability, or long-term care need.
Here are some action items in this regard:
✓ Disability coverage: Should your income stop because you cannot work due to an illness or disability, your estate may face a “double whammy”. You may have to pay for your and your child’s normal expenses out of savings and you may have to pay someone to take over some of the caregiver duties that you have traditionally handled.
Consider acquiring disability coverage, either through your employer or a personal policy, to mitigate this risk.
✓ Health coverage: When it comes to Medicare supplements, consumers tend to gravitate toward the lowest cost. However, these policies can have higher exposure to the insured on the back end. Consider consulting with a seasoned agent to review your choices in light of your goals.
✓ Long Term Care coverage: The escalating costs associated with senior care are a very real threat to the assets that you might be planning on leaving to fund continuation of care for your loved one. Consider acquiring insurance to defray the potential costs of home health care, assisted living, or a long-term care stay for you and/or your spouse.
A common refrain is that “it costs too much”. However, the premium cost pale in comparison to the out-of-pocket costs you’ll be facing in the event that you need this type of care.
Furthermore, imagine this scenario: You have a child who becomes the de-facto advocate for their impaired sibling and finds themselves having to look after you both with a dwindling supply of assets.
Many insurance companies are coming up with innovative and lower cost policy design. Consider consulting with a seasoned insurance professional on a policy that is appropriate to your needs and budget.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
Securities and Advisory services offered through LPL Financial, A Registered Investment Advisor, Member FINRA/SIPC. For informational purposes only. Integrated Financial Group and LPL Financial do not provide legal advice or services.