My mother-in-law (in her 60s) has no assets, and a pension (state and Social Security combined) of less than $700 month when she retires.
Currently, I'm paying for LTCI ($150/day, 90-day elimination, 5 years of benefits, premium $110/mo) for her.
My wife and I do not want her to end up in state-run nursing homes due to the low quality of care that may be provided. Our ideal for her is an assisted living facility or paid in-home care when she needs assisted care, which hopefully would not be for 20 years or so.
MILs daughter recently married Rich Guy who bought MIL a new car and hired MIL in his company, doubling her previous salary. The situation I don't want to run into is one in which, twenty years from now, Rich Guy jumps in to save the day and pays for care himself, therefore leaving me with $30,000 in premiums gone down the drain.
Being young, I'm not sure how this has been navigated by others and I am currently having second thoughts about the LTCI. Should I cancel the insurance, hoping that the state will be solvent enough to provide a basic level of care? Should I cancel and save the premiums in an investment that can be used for her care later?