Linda was a widow and had one child. She and her late husband had saved and invested all their lives. Together they had accumulated over $1,600,000 in assets. Linda was always under the impression that her accumulated assets were more than enough to pay for her long term needs. Linda never realized how fast and how much long term care could add up.
Linda always wanted to leave her daughter as much of her wealth as she could. However that is not how it turned out.
Linda had never purchased a long term care policy and her health took a turn for the worst. Linda’s health issues put her in need of full time care and with her daughter living two states away and working full time it was impossible for her to give her mother the care she needed.
After 5 years in a nursing home Linda had drained the entire nest egg that she wanted to leave behind for her daughter. She was forced in a Medicaid facility because she was out of money.
Solution – Linda could have insured against this if she would have just had a plan in place. Linda could have bought a long term care policy that could have protected her nest egg for pennies on the dollar. She could have bought a 10 pay long term care policy that would have cost less than 2% of her entire wealth. She would have been able to stay in the nursing home of her choice and pass on the wealth her and her husband worked so hard for.