Over half of people over 65 will need long-term care, but only a quarter of high worth individuals engage in long-term planning. According to experts, individuals over 50 should start this planning now or they may face serious financial and care consequences when they are older.
Future care needs are becoming more expensive. For example, the median annual cost of a home health care aide is projected to be $66,110, and the median cost of a private nursing home room will be $130,971 in 2027. However, rather than focusing on future needs, people are facing expenses today, such as paying for their kid’s college or buying a home.
Health insurance and Medicare may only cover part of the cost of long term care. Purchasing long-term care insurance is an option. This insurance is less expensive if it is purchased when a person is younger and healthier. Starting to save money at a younger age may also help ease this financial burden.
Like preparing for retirement, investment planning can also provide additional options for financing care. Picking an investment plan depends on a person’s current and future financial needs and, very importantly, the care that is being considered.
Other family members must also be included as an integral part of this preparation. They should be kept apprised of the care that a person wants later in their life. Otherwise, there may be confusion when decisions must be made.
An attorney can help Michigan families prepare documents and consider options that can provide the best care under the circumstances. They can also address other estate planning issues related to decision-making when a person becomes incapacitated.