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Long-Term Care Insurance: What You Should Know

For retirees, health care costs are a huge unknown that can wipe out your finances quickly. While most retirees take advantage of Medicare, many don't realize that Medicare largely doesn't cover nursing-home care and other long-term care expenses.

In the following video from The Motley Fool's series on retirement investing, sponsored by TD Ameritrade, Fool consumer finance expert Dayana Yochim talks to Dan Caplinger, the Fool's director of investment planning, about how long-term care insurance works and how it can help you avoid costly expenses in retirement. Dan notes that Medicare only covers skilled-nursing facilities for a limited time, leaving you on the hook for extended stays and ongoing care needs. But long-term care insurance can kick in to cover those expenses. Dan goes through some common terms of long-term care insurance and points out some of the pitfalls involved with coverage. But it's wise to at least consider long-term care insurance, as it can help many people preserve their assets more effectively in retirement.

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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 26, 2014, at 4:37 AM, thomasforbes wrote:

    Without coverage, the cost of long term care will surely wipe out your nest egg. It comes with a hefty price tag and what's worse is that it continues to increase. Only a few people have prepared for this and purchased private insurance. The remaining are confident that government programs such as Medicare will aid them. The truth is, Medicare will not cover the core of long term care. What you should do is get covered as early as possible in order to avoid high rates. Ltc insurance sure is expensive in nature but this is the most efficient way to pay for nursing homes, assisted living facilities and other long term care services. There are also ways to cut your premiums, so don't be afraid to explore this option. One effective way is by requesting for quotes, which allows you to compare plans, benefits, discounts and other features of ltc insurance. In this way, you can find an appropriate coverage for your future needs without going over your budget. For free ltc insurance quotes from top carriers, just visit any of the websites below.

    http://www.longtermcareinsurance.org/

    http://www.ltcoptions.com/free-long-term-care-quotes/

    https://www.aaltci.org/long-term-care-insurance/free-quote/

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DocumentId: 2889138, ~/Articles/ArticleHandler.aspx, 9/20/2014 10:31:31 PM

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Dan Caplinger
TMFGalagan

Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on Fool.com. With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.

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