Dear Dave,

I’m trying to help my elderly mom with her finances. She has no debt and more than $1 million in assets. There was also another $500,000 trust left for her by my dad. With access to all this, does she still need long-term health insurance?

ANONYMOUS

Dear Anonymous,

Absolutely! She also needs an estate planner immediately. Your parents were far too wise with their money to have your mom end up in a bad situation towards the end of her life. You need to do everything you can to prevent this from happening.

In the event she’s unable to take care of herself, long-term care health coverage to take care of nursing home or in-home care is an absolute necessity. The cost of nursing home care can run from $75,000 to $100,000 a year. Your mom is in great shape financially. But just imagine what a prolonged nursing home stay could do to her nest egg. It’s not a pretty thought.

When you hit 60, you need long-term care insurance, period. Whether you have $1 million-plus in the bank or not, I strongly recommend it as a wise part of any asset management plan.

— DAVE

Dear Dave,

What exactly is a money-market account?

JULIE

Dear Julie,

Money markets are short-term financial instruments. Money market accounts pay about the same, maybe a little bit more, than traditional savings accounts. If you get a money-market account with a bank, you’ve basically got a savings account that mirrors — or pays about the same — as the actual money markets.

Now, if you get a money-market account with a mutual fund company, you’re actually buying into the money markets. The big difference is that the mutual fund companies are a lot more flexible, and they don’t have FDIC (Federal Deposit Insurance Corporation) insurance.

I have my emergency fund parked in a mutual fund company money market account, and the great thing is that it’s fully liquid — meaning there are no penalties to take cash out at any time. It’s a perfect place to keep an emergency fund.

—DAVE

Dave Ramsey is America’s trusted voice on money and business, and CEO of Ramsey Solutions. He has authored seven bestselling books. The Dave Ramsey Show is heard by more than 11 million listeners each week on more than 550 radio stations and digital outlets. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.