As we age, so do our parents. Many South African's find themselves sandwiched between taking care of their financial responsibilities and finding a way to take care of their parents.
It can become increasingly expensive if you do not have a financial plan to handle things such as your parent's sustaining a disability. Who will cover their daily living expenses? How will you pay for their medical bills and home-based care without stretching your budget thin?
The chances of becoming disabled increase with age
Our hearts may remain forever young, but the reality is that our bodies fail to keep up. It also means that we are more prone to life-threatening illnesses and injuries that could lead to disability.
There are currently 2 870 130 people in South Africa who have a disability, and this is not just the elderly making up these numbers. Research shows that the chances of you sustaining a life-altering disability in South Africa peaks in your mid to late '20s and again in your fifties.
According to StatsSA, more than half (53,2%) of persons aged 85+ are reported to have a disability. The additional health costs alone of taking care of someone with a disability can end up costing you between R10,000 - R40,000 or more. Reducing the blow that comes with taking care of a loved one doesn't have to be an overwhelming process. Having a financial plan in place can help you shoulder the costs of taking care of a parent/s.
Have the conversation early
Clear communication and financial planning can help you and your finances become better prepared for taking care of a parent with a disability. In a time where so many things can be unpredictable, the last thing you want to do is leave your finances exposed to chance.
Discussing with your parents or partner about how you plan to take care of your parents is crucial. Look at things such as their current finances and expenses. What will happen if you plan on having your parents move in with you?
What will be the best way to support them financially without straining your finances? Will they need nursing care? Thinking ahead can give you breathing room to set buffers in place that will prevent your finances from taking a massive knock. It also buys you time to find the best policies that are affordable without having to skimp on care.
Start small with the right policies
Preparing for taking care of your parents doesn't have to be overwhelming. The key is to start small and early. Know the right products to invest in when it comes to creating a financial buffer.
Having the basics of life cover, which can cost as little as R149 a month, disability cover, and funeral cover are some of the things to have in your arsenal. Remember to start with one thing at a time to avoid taking on too much at once. MiWayLife offers a 2-in-1 funeral and life insurance policy under one premium to help you be better prepared with an affordable option.
Consider having them on a medical aid plan to help you shoulder the costs that come with check-ups, medication and care. It is always better to research and compare your options to find one that comes with the best benefits that are affordable.
Creating a sustainable financial plan
No two situations are the same. Therefore, finding ways that work for you and your family is crucial. Asking other family members where possible to assist in shouldering the responsibility in whichever way they can also make the process less stressful. You may not have all the answers when you start but speaking to a financial advisor will be one of the best ways in which you can help find a financially sustainable plan. Always remember that it is better to start somewhere than to leave it until it’s too late.
