Interrupter CheckmarkInterrupter IconFacebookGoogle PlusInstagramGroupRamsey SolutionsTwitterYouTubeExpand MenuStoreCloseSearchExpand MenuBackStoreSign in

Ask Dave

Cared For By The State

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.