* Calculations are based on the specified inflation rate and a 7% annual growth rate on savings. This information is for educational purposes only and should not be considered as financial advice. Please consult with a financial professional for personalized financial planning.
This projection provides an estimate of the costs associated with disability, long-term care, chronic illness, critical illness, and terminal illness in the United States. The costs used are based on the following averages:
Average Monthly Disability Income: $1,537
Average Monthly Long-Term Care Cost: $9,034
Average Cost of Chronic Illness: $79,000
Average Cost of Critical Illness: $100,000
Average Cost of Terminal Illness: $94,000
The projections consider an annual inflation rate of 3.5%. These figures are based on data from various reputable sources, including the Genworth Cost of Care Survey, American Cancer Society, and other healthcare financial reports. The chosen costs for chronic, critical, and terminal illnesses reflect the significant expenses not typically covered by standard health insurance plans, such as out-of-pocket expenses, non-medical costs, and indirect costs like lost income.
Time is the most potent factor in any financial plan; the earlier you begin, the greater the benefits of compounding. Start with an amount that is manageable for you now, as you always have the option to increase your contributions later.
REQUIRED SAVINGS BY AGE