What would happen to your income if your spouse were to pass away? If you are living on social security, your income could become substantially lower after your spouse’s death. Are you entitled to a survivor benefit on your spouse’s retirement plan? Would you still have health insurance?
If you are working, what would happen if you suffered a serious injury? Do you have a long-term disability plan, and if so, how much of your income would you receive? Would you be responsible for paying your own health insurance premiums in this event? These are possibilities that could result in a sudden loss of income. But if you do your research now, you can be prepared for what could be one of the most devastating times in your life.
One extremely expensive and often unforeseen cost today is for long term health care. While family and friends may do their best to help you, it may become too difficult, or they may not have the resources or skills needed to continue this care. A 2006 AARP report revealed that the value of unpaid care (from family and friends) for the elderly in this country was close to $350 billion. The report also noted that three years is the average length of that care, and 69 percent of all adults over 65 will need long term care of some kind.
But you do have options. Long term health insurance policies are available, although there is a wide range of coverage and pricing. The premiums are more affordable when you are younger. Choosing a plan will require some thorough research, and you may want to involve your loved ones in this process. You also may want to consult an attorney, other professional (other than the insurance agent), or nonprofit organization, (such as the Michigan Medicare/Medicaid Assistance Program) to help you figure out what is the best choice for you.
Long term care doesn’t just mean care in a nursing home. There are also assisted living facilities and in-home programs available as well, so you may have choices.
And long term health care issues are not just for the elderly. This care is also provided for younger people who have suffered serious illnesses or injuries, so you may not want to wait before seeking out an insurance plan. This coverage may save you from having to worry about money at a time when you will have other concerns and could save your family the burden of how to pay for your health care.
Do you have a plan for what you want done when you die? If so, have you clearly communi¬cated these wishes and plans to your loved ones? If you have purchased a prepaid funeral plan, do others know with whom you have made these prearrangements? Will they know whom to call to get the funeral planning started? Is there sufficient insurance?
Funeral costs can be expensive. Consider a prepaid funeral plan if you don’t already have one. Plans can vary from place to place for similar services, so it is wise to shop around before making a decision. Having a prepaid plan will lock in the costs and spare your family from having to make any payments. Make sure others know where there is written documentation of this plan.
Life insurance is another option. If you have insurance, do your loved ones know which company to contact to make a claim? The policy will not be paid until someone makes a claim and submits a death certificate.