“My husband and I listen to your show as often as we can. Over the past few months we’ve heard a lot of callers asking about the law that makes them pay for their parents nursing home cost.
Shouldn’t they buy long term care insurance on their parents?”
Simply stated, yes. But this is far from a simple question.
Long term care insurance (LTCi) is a rather complicated solution. First, the health of the parents has to be evaluated. And their age(s). And their cognitive abilities. These are just three of the areas that LTCi companies will evaluate prior to issuing a policy. If, for any reason, the parents are uninsurable this option is off the table.
LTCi is not an in-expensive solution. Though LTC policies come in many flavors all of them come with a cost. Some carry annual premiums. Some are paid for with a single, substantial deposit. Others with a series of deposits. However the policies are structured, the costs must be in line with what the children (and it can be shared by multiple children) are able to handle.
LTCi policies are challenging to understand. They are also challenging to compare. It is very important to have a trusted insurance advisor who can understand, compare, and evaluate a large number of companies to find the best policy for each individual circumstance.
All that being said, exploring LTCi with a qualified, experienced, and trusted insurance advisor is a wise first step in building a long term care plan to protect both the parents who may lose their health and the children who may lose their wealth.
If you have questions or comments, please send them to Gene@AskMtM.com