Dave Ramsey says: At 60, it’s good idea to plan for long-term care insurance

Aug 10, 2021, 12:15 PM
(Unsplash Photo)...

Dear Dave,

My dad passed away about a year ago, but he left my mom in really good shape financially.

They never had any consumer debt, the house is paid for, and they had about $1 million in assets. Dad also left her a $500,000 trust.

Mom is going to be 60 next year. She is in good health, but considering her age and financial situation, do you think she needs long-term care insurance?

– Darby

Dear Darby,

I’m so sorry to hear about your dad. Losing a spouse, or a father, is tough at any age.

The good news is your dad did a great job of planning to take care of your mom. He left her in fine shape money-wise, but yes, she needs long term care insurance and a good estate planner. You need to help your mom do everything possible to handle her situation wisely.

I usually suggest folks wait until age 60 to buy long-term care insurance, because the likelihood of filing a claim before then is very slim. In fact, about 95% of long-term care claims are filed for people over 70. That’s why, in most cases, it doesn’t make sense to get long-term care insurance earlier than age 60.

Insurance isn’t a one-size-fits-all kind of thing, though. If someone has a family history of illness or other health issues at a younger age, they may need to get long-term care insurance earlier. But you shouldn’t buy long-term care coverage at a young age just because you’re paranoid of what might happen, or because you think you’ll save money. That’s just not true.

In the event your mom becomes unable to take care of herself at some point, long-term care insurance would be an absolute necessity. The cost of nursing home care these days is astronomical.

Again, your mom is in a great place financially, but a prolonged stay in a nursing home somewhere down the road could eat up her nest egg in a hurry.

Long-term care insurance is a wise part of any good asset management plan.

— Dave

Dave Ramsey

(Unsplash Photo)...
Dave Ramsey

Dave Ramsey says: There are better options than no-money down home loans

“No down payment” mortgage loans allow you to buy a home from a position of financial weakness rather than a position of financial strength.
2 days ago
(Pexels Photo)...
John Delony

5 tips for dealing with toxic stress in your life

The human body can’t handle being in fight, flight or freeze all day every day. If stress is pervasive and persistent, your stress may become toxic. Here are five tips to help you get a handle on it.
4 days ago
(Pexels Photo)...
Dave Ramsey

Dave Ramsey says: Tweak idea for side gig to avoid too much debt

Playing around with $4,000 in debt to make $30 a pop for YouTube videos is a business risk, Dave Ramsey says.
9 days ago
(Unsplash Photo)...
Ken Coleman

Going in style: The right way to write a resignation letter

You’ve made the decision to leave your job. You’re almost out the door, and on your way to a new opportunity. But before you get too carried away, don’t forget to send a resignation letter.
11 days ago
(Pixabay Photo)...
Dave Ramsey

Dave Ramsey says: Hope and hard work can put you on path to financial success

Possibly the biggest factor separating those who stick with it and gain control of their finances, from those who give up and go back to their old ways, can be boiled down to one simple word - hope.
16 days ago
(Unsplash Photo)...
Christy Wright

You should know the history of these 3 American businesswomen

October is National Women’s Small Business Month. In honor of this month, here are some facts about three of American history's amazing female entrepreneurs.
18 days ago

Sponsored Articles


How your family can explore the Musical Instrument Museum

Whether you want to spend a day with family, do crafts with kids at home, or have an adult night out, the Musical Instrument Museum in Phoenix has options. As the world’s only global musical instrument museum, MIM offers interactive and immersive exhibits to foster an appreciation of different cultures and their instruments. “A visit […]
PNC Bank

3 cool tips to turn everyday moments into learning experiences for your child

Early brain development has a crucial impact on a child’s ability to learn and succeed in school and life. Research has shown that 90% of a child’s brain is developed by age five.
Sweet James

Best fall road trips to take on a motorcycle

Autumn in Arizona brings the beauty of color-changing leaves and a relief from summer heat. It’s one of the most pleasant times to explore the outdoors, especially on a motorcycle.
Dave Ramsey says: At 60, it’s good idea to plan for long-term care insurance