When it comes to planning a financial future, the cost of health care tops the list of concerns Americans fear most as they try to plan for retirement. That’s the conclusion of a survey undertaken early this year by Bankrate.com.
The survey asked a representative sample of adults living in the continental United States, “What is your biggest financial worry about retirement?” Twenty-eight percent said they fear their medical expenses will be too high. That compares with 23 percent who said their top concern is that their savings will run out, and 18 percent who said they worry about not being able to afford daily living expenses.
Are You Preparing For Your Financial Future?
What may be more alarming to financial planners, however, is that the report cites a Federal Reserve survey of consumer finances that found less than half of working Americans today even have a retirement account. Many families simply have more immediate financial needs – like paying their children’s college tuition, paying off their own student loans, or covering rising housing costs – than to worry about what the next 20 years might bring.
Even so, it’s still a good idea to begin thinking about a long-term estate plan. You don’t have to be rich to consider taking such a step. Sitting down to discuss your household finances with an expert can help put you on the right track for the future.
A comprehensive estate plan typically includes such things as wills for you and your spouse, maybe a trust fund established for the benefit of your children, and a life insurance policy to provide for your loved ones. If concerns about future medical expenses or other retirement needs are weighing on you, those are also things you may wish to address as you map out your financial future.
Considering Long Term Care Insurance
One option that might help ease some of those retirement worries is purchasing long term care insurance. Long-term health care can take a number of different forms, from home health care to an assisted living facility to a nursing home. The costs can vary widely, and so do the insurance policies covering such care.
Benefits can range from $50 a day on up to $200 a day or more. Naturally, the higher the benefit amount, the more expensive the policy.
Policies also have waiting periods ranging from zero days on up to three months or longer. That means the insurance won’t kick in until the policyholder has been in long term care for the length of waiting period.
Seek Professional Advice
Because every family situation is different, it’s important to sit down with an experienced attorney to discuss your options when considering long term care insurance or making other estate plans.
Attorney John Grundy is experienced in the area of elder law and estate planning. He’s has been helping families in Warren, Aurora, Youngstown, Cortland, Akron and all of Northeast Ohio for nearly 30 years deal with these issues. Contact us today to schedule a free consultation.