Can I Self-Insure Against the Risk?

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Hypothetical Annual Premium of $1,556 1
Premium Saving at 4%
33% Tax Bracket 		Age Annual Cost of Care
3% Inflation
$1,556
52
$62,050
$3,154
53
$63,912
$4,795
54
$65,829
$6,480
55
$67,804
$8,210
56
$69,838
$9,986
57
$71,933
$11,810
58
$74,091
$13,683
59
$76,314
$15,606
60
$78,603
$17,580
61
$80,961
$19,607
62
$83,390
$21,688
63
$85,892
$23,825
64
$88,469
$26,020
65
$91,123
$28,273
66
$93,857
$30,587
67
$96,673
$32,963
68
$99,573
$35,402
69
$102,560
$37,907
70
$105,637
$40,479
71
$108,806
$43,120
72
$112,070
$45,832
73
$115,432
$48,616
74
$118,895
$51,475
75
$122,462
$54,411
76
$126,136
$57,425
77
$129,920
$60,520
78
$133,818
$63,698
79
$137,833
$66,961
80
$141,968

After 28 years of saving, you  have accumulated approximately enough money to pay for only 5.7 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 ($358,943.00) of exposure.

Every year in addition to the average 3 Year need will cost you an additional $141,968 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