Can I Self-Insure Against the Risk?

Change Profile

 

Hypothetical Annual Premium of $1,556 1
Premium Saving at 4%
33% Tax Bracket
Age Annual Cost of Care
5% Inflation
$1,556
52
$62,050
$3,154
53
$65,152
$4,795
54
$68,410
$6,480
55
$71,830
$8,210
56
$75,422
$9,986
57
$79,193
$11,810
58
$83,153
$13,683
59
$87,311
$15,606
60
$91,677
$17,580
61
$96,261
$19,607
62
$101,074
$21,688
63
$106,128
$23,825
64
$111,434
$26,020
65
$117,006
$28,273
66
$122,856
$30,587
67
$128,999
$32,963
68
$135,449
$35,402
69
$142,221
$37,907
70
$149,332
$40,479
71
$156,799
$43,120
72
$164,639
$45,832
73
$172,871
$48,616
74
$181,515
$51,475
75
$190,591
$54,411
76
$200,121
$57,425
77
$210,127
$60,520
78
$220,633
$63,698
79
$231,665
$66,961
80
$243,248

After 28 years of saving, you  have accumulated approximately enough money to pay for only 3.3 months of care.

If you were faced with the average 3 Year Long-Term Care need2, even under the optimal saving conditions shown above, you would have ($662,783.00) of exposure.

Every year in addition to the average 3 Year need will cost you an additional $243,248 per year.

1. Interest credited at the end of the year. Hypothetical premium based on $170/Day, 100% Home Health, Three Year Benefit Period, 3% Compound Inflation Rider and 90 Day Elimination Period with Spousal & Preferred Discounts. Policies vary, consult your agent about specific plan design and premiums for your individual situation.

2. National Clearinghouse for Long-Term Care Information, "How Much Care Will You Need?" June 2012