I recently heard from a listener named Stacey T. who said, I'm currently looking at long-term care insurance.

I'm wondering if I should redirect some of my retirement contributions to help pay for it,

and whether I should choose traditional or hybrid insurance.

Thanks so much for your email, Stacey.

Knowing the best way to manage potential long-term care needs is one of the most challenging financial decisions we face.

There's a tension many people feel between keeping their savings goals on track

and preparing for an unpredictable future that could require expensive care.

This podcast will explain how different types of long-term care or LTC products work

and their pros and cons. And I'll help Stacey figure out if shifting funds from a

retirement account to a long-term care product is the right money move. Hey, everyone, welcome back to

episode 1016 of Money Girl. This is Finance Friday, where I answer your burning money questions.

I'm Laura Adams, an award-winning author, spokesperson, and money speaker. Now, Stacey's question hits on a huge point of confusion.

What exactly are we buying when we talk about long-term care? So before we look at her specific

dilemma of whether to stop retirement investing,

we've got to define what this coverage actually does, and more importantly, what it doesn't do.

So long-term care insurance or products give you financial assistance when you need help with

activities of daily living or ADLs.

They might include eating, dressing, moving around, or using a bathroom.

Unfortunately, those types of non-medical custodial care aren't covered by Medicare or

standard health insurance. And just to give you a brief

background, Medicare is a federal health insurance program for U.S. citizens and permanent

residents over age 65. It also covers younger people with certain disabilities or health

...