Can I Self-Insure Against the Risk?

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Hypothetical Annual Premium of $3,477 1
Premium Saving at 4%
33% Tax Bracket 		Age Annual Cost of Care
5% Inflation
$3,477
52
$138,700
$7,047
53
$145,635
$10,713
54
$152,917
$14,477
55
$160,563
$18,342
56
$168,591
$22,311
57
$177,021
$26,386
58
$185,872
$30,570
59
$195,166
$34,866
60
$204,924
$39,277
61
$215,170
$43,807
62
$225,928
$48,458
63
$237,224
$53,234
64
$249,085
$58,138
65
$261,539
$63,173
66
$274,616
$68,343
67
$288,347
$73,652
68
$302,764
$79,103
69
$317,902
$84,700
70
$333,797
$90,447
71
$350,487
$96,348
72
$368,011
$102,407
73
$386,412
$108,629
74
$405,733
$115,017
75
$426,020
$121,576
76
$447,321
$128,311
77
$469,687
$135,227
78
$493,171
$142,328
79
$517,830
$149,619
80
$543,722

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 ($1,481,547.00) of exposure.

Every year in addition to the average 3 Year need will cost you an additional $543,722 per year.

1. Interest credited at the end of the year. Hypothetical premium based on $380/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