Final answer:
Neither 'Medicare is a practical way to pay for long-term care' nor 'Medicaid planning should always be used by advisors' are universally correct statements. Medicare offers limited long-term care coverage and not all clients should use Medicaid planning.
Step-by-step explanation:
When it comes to planning for the cost of long-term care, there are two critical statements to consider:
- Medicare is often believed to be a practical way to pay for long-term care. However, it's important to understand that Medicare is primarily designed to cover short-term medical expenses and hospital care, and it offers limited coverage for long-term care. It is not intended to pay for long-term care services in full, especially over an extended period.
- Medicaid planning, which involves transferring assets to qualify for Medicaid, is another strategy advisors sometimes recommend to clients to manage long-term care expenses. But this should not always be used, as it needs to be tailored to individual financial situations and the ethical and legal implications must be considered. Medicaid is designed to aid those who have financial needs, and improper asset transferring might lead to penalties or disqualification.
Therefore, neither statement on its own is universally correct. The correct choice is: d. neither 1 or 2.