Should you stop retirement investing to pay for long-term care?

1016. Are you concerned about affording the future cost of long-term care (LTC), especially with inflation and rising healthcare costs? Laura answers a listener’s question about buying LTC insurance or investing for retirement. You’ll learn how different LTC products and services work and their pros and cons for those with different budgets and goals.

Key takeaways: 

• Traditional long-term care insurance is best for people in relatively good health with sufficient assets and retirement savings to protect, but you don’t get payments back if you never need covered care.
• Various hybrid products, such as life insurance and annuities, can include LTC benefits and accrue value you can pass to your heirs, but at a higher cost than traditional LTC insurance.
• Using personal savings or home equity may be an option to pay for LTC if you have a high net worth and are comfortable self-insuring.
• Medicaid is the largest single payer of nursing home care in the U.S. for those with low assets, such as a net worth below $2,000, or other eligibility requirements.
• Veterans may be eligible for specific LTC benefits that provide a monthly stipend for care at home or in a facility.

Upcoming Wedding Series Coming Up: We want your questions about wedding finances! Whether you're the bride, groom, or a guest, send us your questions about budgeting for the big day. Email: [email protected] or leave a voicemail: (302) 364-0308.

Money Girl is a Quick and Dirty Tips Podcast, hosted by Laura Adams.

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