The very rich and the very poor have one thing in common: They don't need long-term care insurance.
The rich can pay their way and the poor can rely on Medicaid for care.
People with a paid-off house and at least $250,000 in investments probably need to at least consider long-term care (LTC) insurance to help pay for a stay in a nursing home, according to the Chicago Tribune.
The problem with traditional LTC is that premiums can rise dramatically as you age. Yet, if you don't buy LTC, and if you need care, you'll have to pay from investments, savings or a house sale.
Consider the cost of LTC premiums over a 10-year period versus the cost of maintaining a spouse in a nursing home for a year or more.
If you don't take LTC, then consider your backup plan to pay for care. Selling a house could pay for care. Spending down investments could, too. The key question would be how much a surviving spouse would have to live on.
Another reason to buy LTC insurance, if you can afford it, is to leave an inheritance for children. LTC might preserve some assets.