There are many aspects of estate planning some may not consider as they work to plan for their future. One consideration for people in Texas may be the idea of long-term care insurance as a part of estate planning. This type of insurance, with some policies, can offer peace of mind to a person concerned about paying for medical care in old age along with the assurance that whatever money is not used in medical care can be offered to heirs in estate planning documents.
Authorities familiar with the cost of paying for medical assistance for the elderly have noted that 60 percent of people now over the age of 65 will require some type of long-term care. With the cost of the care reaching in excess of $10,000 per month, many people in Texas and across the country are concerned about paying for these expenses. Added to that concern is the notion that the person planning an estate wishes to leave some inheritance to their beneficiaries.
The high cost of long-term care can eat into the nest egg of those who have not had the foresight to purchase long-term care insurance. With some policies, a rider for care can be placed on the policy. This rider will offer the peace of mind that long-term care insurance grants but additionally allows people to use a certain amount of money for anything they want. People can leave it for their heirs or use it to help compensate family members who help with their care.
Estate planning can be complicated in many cases. Though it is important for people regardless of the size of their estate, many assume that the process is too complicated to benefit those with fewer assets. This is not the case, and in fact, all may find creating an estate plan beneficial as they decide how to plan for the remainder of their life and beyond.
Source: CNBC, “What Is the Future of Long-Term Care Insurance?” Elizabeth Alterman, July 3, 2012