Corimo writes:

<<I keep reading about long-term care insurance. Does anyone own any or have an opinion about it?>>

I asked my mother to look into it recently. She is single and 72, and while I love her, I would prefer not to be responsible for bathing and feeding her if she ever needs that.

After speaking with several agents, she decided that the cost of the insurance was simply to high. It would be about $2,500 a year, and would only be available to her for a maximum of two years. If over the course of the next 20 years she never needed it (and her mom lived until 94), she will have spent $50,000 for nothing.

Therefore, she adopted an alternative plan. Each year on her birthday, she is going to take that $2,500 and invest it. Assuming an annual average return rate of 11% (the long term S&P average) at the end of 20 years, that money will have grown to $180,663. That amount will most certainly cover my mom for 2 years of care.

Of course, if something happens earlier, the whole scenario is moot. But she does have her retirement money if something dreadful occurs.

Either way you slice it, it's risky. Every person has to go with the scenario that feels most comfortable.

I also recommend reading TMF Pixy's series on the matter:

http://www.fool.com/retirement/retireeport/2000/retireeport000214.htm
http://www.fool.com/retirement/retireeport/2000/retireeport000222.htm
http://www.fool.com/retirement/retireeport/2000/retireeport000228.htm
http://www.fool.com/retirement/retireeport/2000/retireeport000306.htm

Fool on!

Barbara Eisner Bayer
TMF Venus