Financial planning for the future is incredibly important. This is especially true when you try to factor in medical care or the need for long-term care. This is something that most people are going to have to consider at one point or another.
But what you’ll find is that people are sometimes shocked about the true cost of long-term care. They haven’t saved up nearly enough money, and they are completely unprepared.
For example, one report said that a semi-private room in a nursing home cost more than $10,000 a month, and reports said that the costs had been skyrocketing. That means that the minimum cost, at this price point, would be around $120,000 per year. And that’s just to live in the nursing home, not counting any additional medical costs that may exist.
What can you do?
The most important thing is to begin planning early and to look into all the options that you have. It’s also important to set goals, to accurately understand the market, and to create a plan to get your finances to that point. For most people, this is not something that can be addressed at the last minute.
Thankfully, there are a lot of estate planning steps that you can take to prepare. You can use a medical power of attorney to appoint someone to make decisions on your behalf if you can’t, for instance. You can set up a trust or another fund to help cover some of the costs. You could consider taking out a life insurance policy so that you can leave that money to your children while using your own savings to pay for long-term care costs.
There are many options, so just make sure you know how they work and what steps to take.