For a majority of us, end of life planning is a touchy subject. No one wants to think about their life coming to an end or even how to put money towards hospice care and necessary medical procedures that may be required. While mortality is not a topic that is not often talked about, the reality is that we are not permanent residents on earth.
According to statistics by the US Health Department, 70 percent of people that are 65 years of age or older require a form of long term care. It goes without saying that the older you are, the more prone you are to long term care. Therefore, planning ahead is the safest bet that you can make. Apart from cremation urns cost or other send-offs that may be required, a lot of other expenses are needed during the last year (s) of life.
Enter end of life expense planning.
This is the best way to zap anxieties that are associated with a life transition. End of life expense planning is an insurance package of sorts that will protect your family and loved ones financially when illness or death occurs. With this planning, things like embalming, cremation urns cost, purchasing a casket or a headstone will be well-catered for.
Needless to say, your family will be overwhelmed with sadness during this time. Therefore, there is nothing better than knowing they do not have to worry about financial costs. Thus, they can give you a proper send-off without worry.
Important Things to Know About End of Life Expense Planning
- This planning completely takes care of all expenses
End of life financial policies can cater for $25,000 or more. This means that it will be able to cater for all expenses. As such, it will take a big load off your loved ones’ backs and prevent them from paying for these expenses out of pocket. As the average cost of a funeral is $10,000, an end of life policy will cover much more than that.
- End of life planning offers peace of mind
Your end of life will have a massive emotional toll on those who love and care about you. As all financial expenses will be taken care of then they will have a smooth transition process. If these costs are not catered for, it may be stressful to determine who will pay for what. These moments can quickly spiral out of control and even cause disagreements amongst family members.
- It is possible to pre-plan and prepaid
It is acceptable to shop around for end of life financial policies, compare costs and plan out your ideal send-off. As such, you will be able to pre-pay and determine how the finances will be used even years before your end of life. There is an array of prepaid insurance policies and funeral trusts that you can choose from.
- Specific costs should be considered
There are two main components to your end of life expense plan; the medical component as well the room and board. The medical component is usually covered by health insurance policies like Medicaid and Medicare which cover physical therapy, doctor services, and other medical costs. However, the room and board component requires out of pocket payment. Therefore, it is important to consider the costs that you can afford in comparison to those that will be difficult for you to pay. A little saving goes a long way for your room and board costs.
Important End of Life Expense Planning Tips
- Tip #1: Save funds dedicated to funeral expenses
If you do not have a policy that is dedicated to end of life care then you can simply have savings that will be used for your end of life care and funeral expenses.
- Tip #2: Avoid emotional overspending
Remember, you still have to cater for yourself and your family before your end of life. Therefore, it is best to avoid emotional overspending. Directing all your funds to end of life care is not the best way to plan your expenses.
- Tip #3: Make a plan for end of life preferences
This will make it easy for your loved ones to know exactly what you want. They will be able to make quick decisions when it comes to your end of life care because you have already outlined what you want. Thus, the process becomes easy.
Do not let your end of life expenses catch you by surprise. Things like cremation urns costs, medical care, and even funeral costs should be known in advance. Diligent planning will not only give you peace of mind but also ensure that you enjoy your golden years without any financial and emotional stress.
Start your planning today!