Can I Self-Insure Against the Risk?

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Hypothetical Annual Premium of $2,196 1
Premium Saving at 4%
33% Tax Bracket 		Age Annual Cost of Care
5% Inflation
$2,196
52
$87,600
$4,451
53
$91,980
$6,766
54
$96,579
$9,143
55
$101,408
$11,584
56
$106,478
$14,090
57
$111,802
$16,664
58
$117,392
$19,307
59
$123,262
$22,020
60
$129,425
$24,806
61
$135,896
$27,667
62
$142,691
$30,604
63
$149,826
$33,620
64
$157,317
$36,717
65
$165,183
$39,897
66
$173,442
$43,162
67
$182,114
$46,515
68
$191,220
$49,958
69
$200,781
$53,493
70
$210,820
$57,123
71
$221,361
$60,850
72
$232,429
$64,677
73
$244,050
$68,606
74
$256,252
$72,641
75
$269,065
$76,784
76
$282,518
$81,038
77
$296,644
$85,406
78
$311,476
$89,891
79
$327,050
$94,496
80
$343,402

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 ($935,710.00) of exposure.

Every year in addition to the average 3 Year need will cost you an additional $343,402 per year.

1. Interest credited at the end of the year. Hypothetical premium based on $240/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