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Dave Ramsey says: Get long-term health plan for aging mother

Dear Dave,

I’m trying to help my elderly mom with her finances. She has no debt and more than $1 million in assets. There was also another $500,000 trust left for her by my dad. With access to all this, does she still need long-term health insurance?

— Anonymous

Dear Anonymous,

Absolutely! She also needs an estate planner immediately.

Your parents were far too wise with their money to have your mom end up in a bad situation toward the end of her life. You need to do everything you can to prevent this from happening.

In the event she’s unable to take care of herself, long-term care health coverage to take care of nursing home or in-home care is an absolute necessity.

The cost of nursing home care can run from $75,000 to $100,000 a year. Your mom is in great shape financially but just imagine what a prolonged nursing home stay could do to her nest egg.

It’s not a pretty thought.

When you hit 60, you need long-term care insurance, period. Whether you have $1 million-plus in the bank or not, I strongly recommend it as a wise part of any asset management plan.

— Dave

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