Your estate plan should cover the possibility of having to pay for a year or more of long-term care. Without a plan, this possibility could wipe out savings and diminish your legacy.
Several strategies exist for finding the means to pay for time spent in a residential care facility in New York.
A significant expense
No matter where you live, according to information from the financial site Moneygeek, the cost of long-term care runs into thousands of dollars a month. This holds whether the care takes place in an assisted living facility or a nursing home. Costs range from about $50,000 a year to as much as $100,000 a year depending upon the facility.
While you can hope to avoid this stage of your life, the truth remains that many people will need to spend time in a care facility. The smart approach calls for having a viable plan in place to finance a stint at a care facility.
Many people use a comprehensive approach to plan for long-term care financing. A primary source of payments for many comes from long-term care insurance, in which you begin to pay premiums before entering a facility. These policies vary widely by price and they pay for all or some of a stay in a facility for a set period.
You can also tap into other financial instruments that have provisions for long-term care payments. These include life insurance policies and annuities. Other potential sources of income come from pensions, savings and reverse mortgages.
A sound estate plan helps you prepare for a successful future. This includes the possibility of needing long-term care.