“7 Rules For Wealth: #3 Long-Term Care End Run,” by William Baldwin, Forbes

 

 

Quote:

“People of limited means shouldn’t put money into LTC policies; they can reasonably expect that Medicaid will cover their stay. Prosperous people shouldn’t, either; they can fund a nursing home out of what would have been a legacy. … Plan on using home equity to cover the nursing bill. That means the mortgage should be paid off before you retire. If it isn’t, you were living beyond your means. Keep working until you own the house. If the house is paid for, then if you’re carted away at 87 your spouse can sell it, put the proceeds aside for your expenses and move to a small rental. Not pleasant, but nothing about being married to someone with Alzheimer’s is pleasant.”

 

LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):

Shame on Forbes for publishing such nonsense. What really happens is that Medicaid exempts the home equity and the family puts the infirm elder in a welfare home. The most important reason to own LTC insurance, even if you need your family to help with the premiums, is to avoid Medicaid dependency and ensure access to quality care in the most appropriate venue.