You have a life to live and taking steps today to properly plan for the future can significantly lessen the chance that you might have to depend on others for financial support. Planning now will also help ensure that you have a legacy to pass on to your loved ones; the two top financial worries people think about.
It may seem daunting at first, but working toward long term financial security isn't as complex as it seems. You may already be well on your way. If you have a savings account, 401(k) or investments, you've made a good start. But that may not be enough. It is important to consider how insurance can help to protect your savings from unexpected costs.
One of the most common mistakes people make is to short-change themselves when it comes to life insurance and health insurance coverage. An accident or serious illness can devour even significant savings accounts and investment portfolios quickly.
Many people fail to realize their risk for illness and the impact that can have on their savings. According to the Centers for Disease Control and Prevention (CDC), over 30 percent of adults over age 65 fall each year. A study of seniors, age 72 and older, cited by the CDC, stated the average health care cost of an injury caused by a fall is about $19,440.
If you or someone you know is close to retirement age you might think that finding coverage is next to impossible, but that may not be the case. The key is to purchase while you are still healthy, and since premiums increase with age, waiting can mean higher rates.
For those at risk of needing care in the future, long-term care insurance can play an important role in protecting savings too. And, while it may seem expensive, it's still much less than the cost of care. According to some national statistics; one year in a nursing home can average more than $50,000, and in some regions, it can cost twice that amount.
Addressing these issues today can prevent future conflicts and ensure that your legacy lives on according to your wishes.
As always, if you're concerned about protecting your tangible and financial assets, we're here to help!