pocket max on the year.

Section II: Long$-$Term Care Insurance

Elspa wants your help with her finances. She is $62$ and a widow with about $$1\mathrm{.}5$ million in rental real estate producing $$85,000$ a year in income. She also receives $$1,000$ per month in Social Security and $$1,700$ a month from her husband's IBM pension. She is comfortable living on $$6,500$ per month. Now, she is looking for a longterm care policy to cover her if she needs assisted living or nursing care. She would really like to stay somewhere nice in the San Antonio area to be close to her family. She also wants to make sure each of her grandchildren inherits a rental property when she dies. She wants a retirement community she could live independently in and then transition into care should the need arise. Address the following:

a$.$ Is Medicaid a good option for her? Please explain your position with at least $2$ reasons. Answer:

b$.$ Is Long Term Care a good option for her? Please explain your position with at least $2$ reasons. Answer:

c$.$ Is Paying Cash a good option for her? Please explain your position with at least $2$ reasons $($the textbook gives great guidance on how much a person would need in savings to cover long term health care cost$).$ Answer: