John wants to know how to convince his parents to get long term care insurance. Dave says it's either that, or "state care".
QUESTION: John asks how he can convince his parents to get long term care insurance. They think the state will take care of them. Dave makes a powerful point by clarifying what being taken care of by the state means.
ANSWER: You need to understand that Medicare and Medicaid nursing homes are welfare. Ask your dad how he feels about a welfare program. It’s for poor people, and if your parents go into a nursing home they WILL go through their investments before Medicare kicks in. So, does he want to go to a welfare nursing home? Because that’s what he’s talking about. Here’s another idea. Visit a welfare home, then visit one that’s privately funded by people paying their own money. You’ll see a difference. It’s like the difference between subsidized housing and your house. He needs to buy long term care insurance.