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Insurance might not be the perfect solution to long-term care for the elderly, but it is currently the only solution available.
Long-term care insurance is supposed to pay for treatment in a nursing home, assisted living facility or for a home health nurse when seniors become too ill to take care of themselves.
And it does have some benefits.
It allows people to plan for their long-term needs based on their income and how long they think they might need the care. And with daily nursing home costs increasing -- just like the rest of medical care -- having this insurance could save assets and inheritances.
"It's another asset plan," said Kevin Kaveney of Northwestern Mutual. "But it isn't for everyone."
Wealthy people might not need it, he said, if they have enough money in savings and other retirement plans. And the very poor can rely on Medicaid to cover the costs of nursing homes.
While people in the middle -- who have worked hard to build a nest egg -- are those who can benefit from long-term care insurance, this segment of the insurance industry is fairly new, and consumer protection analysts say in many cases -- it's buyer beware.
Long-term care insurance started about 15 years ago, and several companies underestimated the amount of money it would take to pay for...