Dealing with care later in life is an important part of long-term planning for Michigan residents. Financing long-term care, however, is based on changing realities such as the steadily rising cost of long-term care insurance.
All of us may have to face the day when we need help to engage in daily activities such as eating and dressing. Higher premiums for insurance has complicated long-term planning for this coverage. However, there are new ways to pay for this care and address escalating costs.
Medicare and Social Security is an important part of long term planning for seniors for payment of their medical and other important needs. Recent changes to Medicare premiums reveals the interrelationship between these programs.
Almost everyone may face the possibility that they become unable to make financial decisions or take care of their daily needs. Experts claim that the ability to make financial decisions generally peak when a person becomes 53 and further decrease after 60. Long-term care planning should include jettisoning and consolidating finances, oddly referred to as death cleaning, which can help guard against financial scams, poor judgment and unethical financial advisors.
There are many financial uncertainties in the future but there is one thing that most people know will happen. They will become old and ultimately need health care or assistance with performing their activities of daily living. While polls show that 64 percent of adults do not have a will, individuals should engage in long-term planning to finance their medical expenses and other future necessities.
Michigan residents who move to and even visit other states should not overlook updating their long-term planning and reviewing their estate planning documents. Other states will respect the validity of these documents and plans if they are legal in those states. However, there are important exceptions.
Planning for the future is not an easy feat. But because there are so many what "ifs," it is imperative that Michigan residents take this process seriously. Additionally, it is also crucial to begin the process sooner rather than later. No one can predict when he or she can no longer care for him or herself or make their own decisions, and, while this is typically when we are elderly, this could unfortunately occur much sooner in life than one expects.
Planning for your future tends to initiate thoughts of fun and goal-oriented events. However, future-planning should also entail considering what might happen if you fall ill and what will happen during your old age when you can no longer care for yourself. Thus, individuals in Michigan need to consider long-term care planning when addressing their estate planning needs. This is an excellent way to ensure your finances are in order and you can afford the care you seek to receive as you age.
While estate plans and long-term care plans seem like something an elderly person should worry about, taking care of these processes sooner rather than later could help individuals in Michigan and elsewhere prevent risks and unintended consequences to financial plans.
It can be hard for some Michigan residents to imagine a point in their lives when they will not be able to manage their finances or even care for themselves. Nonetheless, this is a reality faced by many aging individuals. Fortunately, the long-term care planning process can begin even in your 20s and 30s.