Under-65 health insurance will end up the same way....the lower class will get a free ride and the middle class will spend a fortune on insurance because they don't get any subsidies, plus pay the taxes to give the massive subsidies to those below 400% of FPL. That's not a political statement, just the facts.
A long term care policy can help pay the expenses of a nursing home stay (or other long term care). There are a lot of threads here on the forum about LTC. Your friend's parents may or may not have wanted to share the $800k with their kids when they passed. However, the cost of LTC looks like it will chip away at a huge chunk of that. Sounds like they would have been the perfect candidates for LTC insurance when it was first introduced. Hindsight is always 20/20 though.
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Disclaimer - I am an independent insurance agent. If the above message contains insurance-related content, it is NOT intended as advice, and may not be accurate, applicable or sufficient depending on specific circumstances. Don't rely on it for any purpose. I do encourage you to consult an independent agent for insurance-related advice if you have a question that is specific in nature.
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