Chronic family illnesses can cause significant physical, financial, and emotional stress. In the course of a lifetime, most people will have to care for an ill loved one. The costs of long-term care often place a heavy financial and emotional burden on family members. However, with smart planning family business owners can minimize these difficulties.
The emotional impact of giving care to a loved one can certainly be overwhelming. Not surprisingly, many studies show that taking care of someone who is chronically ill has a negative emotional and physical impact on those involved. The stress can often lead to misuse of alcohol and prescription drugs, as well as cases of depression and coronary heart disease.
Your family finances and wealth are also negatively impacted by a family member's need for long-term care. According to several studies, the typical cost to stay in a nursing home is approximately $72,000 annually. A typical stay for a patient is around 3 years.
Even if you choose to take care of your loved one yourself, the costs can still be high. For example, research studies indicate that wage, Social Security, and pension losses due to caregiving is on average $304,000. In realizing this potential situation, we can realize how a sickness can gravely impact your family finances, harmony, and dignity.
To help prevent emotional and financial difficulty, it is important to discuss your situation as a family and come up with a long-term care strategy with your advisers. Your plan should involve two primary goals. First, is to protect the emotional and physical well being of your family member by supervising their care; not providing it. The second goal is to sustain your family finances. This can be done by having someone else pay for that care.
Part of the solution may be to buy an insurance policy to cover the expense of home health care or long-term care. A widely used approach is to have your family business finance the premiums because of the tax benefits. For instance, if you have a C corporation you can set up a care taking plan to cover owners, their spouses, and select members of staff. These costs are tax deductible, and could be tax-free if certain provisions are met.
Typically, most people elect to pay their insurance premiums over their lifetime. But many entrepreneurs elect to finance the premiums over a shorter period of time, perhaps ten years. This strategy allows them to get the most tax advantage, and still be covered for life. There are numerous tax implications for purchasing insurance through your business that vary according to the type of business you own. That is why it so critical to seek advice from all your legal and tax advisers before buying a plan.
It is obvious that caring for a sick family member can place a large burden on your family. Many families have to deal with this type of circumstance at some point, and it often impacts several areas of family life. This is why it is essential for you to start planning ahead and have an open discussion with all family members about what type of care will be provided, who will provide the care, and how it will be funded.
The emotional impact of giving care to a loved one can certainly be overwhelming. Not surprisingly, many studies show that taking care of someone who is chronically ill has a negative emotional and physical impact on those involved. The stress can often lead to misuse of alcohol and prescription drugs, as well as cases of depression and coronary heart disease.
Your family finances and wealth are also negatively impacted by a family member's need for long-term care. According to several studies, the typical cost to stay in a nursing home is approximately $72,000 annually. A typical stay for a patient is around 3 years.
Even if you choose to take care of your loved one yourself, the costs can still be high. For example, research studies indicate that wage, Social Security, and pension losses due to caregiving is on average $304,000. In realizing this potential situation, we can realize how a sickness can gravely impact your family finances, harmony, and dignity.
To help prevent emotional and financial difficulty, it is important to discuss your situation as a family and come up with a long-term care strategy with your advisers. Your plan should involve two primary goals. First, is to protect the emotional and physical well being of your family member by supervising their care; not providing it. The second goal is to sustain your family finances. This can be done by having someone else pay for that care.
Part of the solution may be to buy an insurance policy to cover the expense of home health care or long-term care. A widely used approach is to have your family business finance the premiums because of the tax benefits. For instance, if you have a C corporation you can set up a care taking plan to cover owners, their spouses, and select members of staff. These costs are tax deductible, and could be tax-free if certain provisions are met.
Typically, most people elect to pay their insurance premiums over their lifetime. But many entrepreneurs elect to finance the premiums over a shorter period of time, perhaps ten years. This strategy allows them to get the most tax advantage, and still be covered for life. There are numerous tax implications for purchasing insurance through your business that vary according to the type of business you own. That is why it so critical to seek advice from all your legal and tax advisers before buying a plan.
It is obvious that caring for a sick family member can place a large burden on your family. Many families have to deal with this type of circumstance at some point, and it often impacts several areas of family life. This is why it is essential for you to start planning ahead and have an open discussion with all family members about what type of care will be provided, who will provide the care, and how it will be funded.
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