Can I Self-Insure Against the Risk?

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Hypothetical Annual Premium of $2,379 1
Premium Saving at 4%
33% Tax Bracket 		Age Annual Cost of Care
5% Inflation
$2,379
52
$94,900
$4,822
53
$99,645
$7,330
54
$104,627
$9,905
55
$109,858
$12,549
56
$115,351
$15,264
57
$121,119
$18,052
58
$127,175
$20,915
59
$133,534
$23,855
60
$140,211
$26,873
61
$147,222
$29,972
62
$154,583
$33,154
63
$162,312
$36,422
64
$170,428
$39,777
65
$178,949
$43,222
66
$187,896
$46,759
67
$197,291
$50,391
68
$207,156
$54,120
69
$217,514
$57,949
70
$228,390
$61,881
71
$239,810
$65,918
72
$251,800
$70,064
73
$264,390
$74,321
74
$277,610
$78,692
75
$291,490
$83,180
76
$306,064
$87,788
77
$321,367
$92,520
78
$337,435
$97,379
79
$354,307
$102,368
80
$372,022

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 ($1,013,698.00) of exposure.

Every year in addition to the average 3 Year need will cost you an additional $372,022 per year.

1. Interest credited at the end of the year. Hypothetical premium based on $260/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