Are you wondering how you’ll manage the costs associated with yours or a loved one’s End-of-Life? This important life passage deserves a well-considered financial plan.
Paying for final care and services may be easier than you think. There are several financial resources available to help you pay for final costs and reduce the financial burden on your loved ones as you near End-of-Life and after you pass away.
Most people use a combination of these three main financial resources:
- Personal funds
- Insurance policies
- Government programs
You may need to use personal savings to pay for your End-of-Life costs. We suggest that you review your financial resources including your personal savings and any income you receive from investments, stocks, bonds, mutual funds, 401ks, pension or other retirement funds. You may also be able to leverage the value of your home through a reverse mortgage to help you pay for End-of-Life costs.
Insurance policies can help you pay for End-of-Life care and final services and help support your loved ones after you pass away.
We suggest that you review all of your insurance coverage, including:
- Health insurance – typically covers long-term care services for short-term only or medically necessary care under specific conditions
- Long-term care insurance – is private insurance that you or an employer may purchase to cover nursing home-only or both home and facility care
- Life insurance – replaces the loss of income that your loved ones would experience in the event that you pass away. You may be able to use some life insurance policies to pay for long-term care services.
- Funeral insurance – also called burial, final expense or pre-need insurance, includes financial products and services to pay for final arrangements
Read the full article on which End-of-Life planning resources are right for you here.