The old saying used to be that you could only count on two things: death and taxes. Today, we need to amend that include a third constant: the rising cost of healthcare. For some time now, medical costs have increased at a pace that exceeds inflation. No one is predicting a change in that pattern.
To cope with these rising costs, we recommend you treat health expenses just as you do the other line items in your budget. Factor this cost into your budget and understand its impact on your cash flow.
Remember that it is the unexpected, and unbudgeted, large expense, such as the cost of long-term care, that often leaves a healthy partner financially compromised. One way to calm the fear about unexpected healthcare needs may be to purchase a long-term care policy. Although long-term care insurance is expensive, having this coverage can take some of the uncertainty out of your financial situation. Often, retirees tell us that they live more confidently knowing that if a long-term care situation arises, it will be funded (at least partially) by insurance. It is important to work with a qualified insurance professional when reviewing the need for this coverage and to carefully consider whether it is needed given other resources that may be available.