Most of us don’t contemplate setting money aside for the unforeseen. We cannot prepare for things that do not occur to us. For this reason, the cost of long-term care for family member, a relative or ourselves comes as a complete, unpleasant surprise, and a weighty burden on our finances.
In normal circumstances, most people are faced with the situation of moving into a care home and selling their own home. The reality is the failure of the UK Government to deal with the aging population of the country. Means testing can indicate a frightening time ahead for many who must provide finances for their own long-term care.
Remortgaging
If you suddenly need to provide long-term medical care for a relative or family member, you may consider remortgaging your home to raise the funds. This may be a short-term solution, but someone with long-term medical care needs may live for thirty or fifty years, and remortgaging may not be a good long-term option.
Equity Release
It may be possible or beneficial to trade the equity in your home for enough money to pay for your own care. However, like remortgaging, there is no way to place a time limit on how long you will require care, so you are taking a gamble with your ability to support yourself.
Sell the Home
No one wants to do this, but you could sell your home, downsize to a small property, or simply sell up and use that money to pay for your long-term care.
Spending the Inheritance
Along with selling your home, you may be forced to liquidate your assets, cash in your stocks, shares and investments to pay for your long-term care or the care of others. If this is the case, make sure you get financial advice about making Of course; it isn’t ideal to cash in what might be your children’s inheritance, but it may be your only option.
Long Term Care Insurance
One way to prepare for the possibility of long-term care without having to sell your home or give up your children’s inheritance is to arrange for long term care insurance. This is a relatively new but sensible idea that covers the prospect of you or one of your nearest and dearest becoming sick or ill and needing long-term care.
Long Term Care Insurance means paying a monthly premium towards an insurance fund and then making a claim if you require support for long term care costs such as nursing homes, care assistance or assisted living.
Long-term care is very expensive and most of us don’t plan for it. To discuss making preparation for long-term care, and looking at options such as long term care insurance, contact Hanson Wealth Management today.
