Most people who embark on creating an estate plan do so for two reasons: to ensure that financial resources are available for a comfortable retirement, and to secure the financial future of their family after they are gone.
Unfortunately, many people fail to plan for an unforeseen illness, which can come suddenly and rob their savings as well as the financial future of the family. Fortunately, there are some steps you can take to plan for a potentially chronic illness:
Set up an emergency fund. If you fall victim to a sudden illness, you will probably be working less (if at all) and will also have additional expenses. Having six months’ worth of living expenses in an emergency fund or establishing a line of credit to tap in case of an emergency is often recommended to alleviate this worry.
Have health insurance. If you do not have health insurance provided to you by an employer, you will need to have your own policy. The time to obtain good health insurance is, of course, before you need it.
Get disability insurance. Disability insurance replaces lost income, and can be a life-saver for employed people confronting chronic illnesses. This type of policy typically replaces up to 60 percent of your normal income.
Consider long-term care insurance. If you are nearing retirement, look into long-term care insurance before you are too old to afford it or to qualify.
Get started by contacting our Orange County asset protection estate planning law firm as soon as possible.