[quote=scaredycat]1,000,000 at 3% interest yields 33,000. nursing home insurance = 10k a year?
prescriptions.
a movie once ina while. [/quote]
Just a note on long term care insurance… It typically has a “lifespan” of 3-5 years. (Rates higher for the longer coverage.) If you live longer than the coverage – then… Oh well…
This can be a significant issue for someone with a debilitating, but potentially long term condition. Alzheimers comes to mind.
A coworker’s mom is in a nursing home with alzheimers. She’s only got 9 months left on her coverage. After that, whatever cash she has will go to cover the $10k/month rent.
My brother in law’s mom is in assisted living here in San Diego. She waited to start the coverage – even though she NEEDED it – because she didn’t want to outlive the coverage and be forced to move to a crappier place.
Long term care is expensive. Insurance for it is not unlimited.
As I said in my previous post – I’ve got a lot of experience with this because of my parents, my husbands parents, and various relatives parents.
Don’t spend your parent’s money because they may need it.
