What about long-term care insurance?

Long-term care insurance is expensive, and obtaining a policy is fraught with peril. This insurance pays part of the daily cost of long-term nursing home care. For an individual over the age of 65, premiums start at $2,000 and range up to $10,000 or more per year, depending on age, health, and other factors.

On top of the premium, the policy holder may still have to pay thousands a month to a nursing home anyway. Not all policies include inflation protection, which is significant considering that health care costs have experienced streaks of double digit inflation for years at a time. In a recent study, Consumer Reports determined that “for most people, long-term care insurance is too risky and too expensive.”