Have you known anybody who needed nursing care. If they were confined to a nursing home, got care at home, or relied upon assisted living, you may now that it probably put a big dent in the family finances if they were not prepared. Nursing care costs a lot, and it will cut into savings very quickly if people are not prepared. It is more important than ever to plan ahead.
One solution may be a long term care (LTC) policy. They vary, so a plan may be within your family budget, and it can help you prepare for the costs of nursing homes. In fact, some plans are flexible, and they will pay for long term care facilities, home care, or other choices.
Some are set up so the premiums can be deducted from federal taxes, and these are called tax qualified plans. Others are called non-tax qualified plans. They cannot be deducted.
We may look forward to more help when the US health reform bill starts to kick in. There may be a new option to choose a federal program. The new program is voluntary, and the benefits will not cover all costs, but it may help solve some of the problem. This is something to consider in the future.
Of course, there are federal health plans today. But Medicare only pays for short nursing needs. Medicaid requies patients to spend most of their money and other assets in order to qualify. These are not perfect solutions either.
Many peope look into alternatives to insurance policies or they just do not do anything. There is not one correct solution for every family or individual. Hopefully, you will do some research to find a comfortable choice for yourself.