Can I Self-Insure Against the Risk?

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Hypothetical Annual Premium of $1,739 1
Premium Saving at 4%
33% Tax Bracket 		Age Annual Cost of Care
5% Inflation
$1,739
52
$69,350
$3,525
53
$72,818
$5,358
54
$76,459
$7,241
55
$80,282
$9,174
56
$84,296
$11,159
57
$88,511
$13,197
58
$92,937
$15,290
59
$97,584
$17,439
60
$102,463
$19,645
61
$107,586
$21,910
62
$112,965
$24,236
63
$118,613
$26,625
64
$124,544
$29,078
65
$130,771
$31,596
66
$137,310
$34,182
67
$144,176
$36,837
68
$151,385
$39,563
69
$158,954
$42,362
70
$166,902
$45,236
71
$175,247
$48,187
72
$184,009
$51,217
73
$193,209
$54,329
74
$202,869
$57,524
75
$213,012
$60,805
76
$223,663
$64,174
77
$234,846
$67,633
78
$246,588
$71,185
79
$258,917
$74,832
80
$271,863

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 ($740,757.00) of exposure.

Every year in addition to the average 3 Year need will cost you an additional $271,863 per year.

1. Interest credited at the end of the year. Hypothetical premium based on $190/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