Nobody take into account the huge expense they might face for daily help, if they become disabled. While you are younger than 65 this won’t be a problem if you have Disability cover. But after 65 this could create a huge shortfall in your monthly budget. Also keep in mind your medical aid won’t cover it.
One of the biggest risk to your financial security post retirement, are health care costs. But nobody takes into account the cost involved with Long Term Private Care.
Most of the financial planning being done in the industry, are focused on covering your income and medical cost, when you retire. There is no focus on the cost of Long Term Private Care. The next issue you and your financial advisor will face, is to calculate what amount of cover will sufficient for Long Term Private Care. The long and short of this situation is simple, something is still better than nothing…
There are 2 ways to provide for this unforeseen event. You can get Critical Illness form an insurance house or you can save for it yourself at an investment house. Both these options has their pros and cons, but I’m not going to discuss it in detail. This decision can only be made, after a full financial analyses was done.
Now that we have established that Long Term Private Care is very expensive and that there is no attention given to it. What are you going to do…? Take the risk…? It might never happen, a lot of people would say. The only certainty of this situation is, it is very expensive and do you really want the financial stress….