Can I Self-Insure Against the Risk?

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Hypothetical Annual Premium of $1,922 1
Premium Saving at 4%
33% Tax Bracket 		Age Annual Cost of Care
5% Inflation
$1,922
52
$76,650
$3,896
53
$80,482
$5,922
54
$84,506
$8,003
55
$88,731
$10,139
56
$93,168
$12,333
57
$97,826
$14,586
58
$102,717
$16,899
59
$107,853
$19,274
60
$113,246
$21,713
61
$118,908
$24,217
62
$124,853
$26,788
63
$131,096
$29,428
64
$137,651
$32,139
65
$144,534
$34,922
66
$151,761
$37,780
67
$159,349
$40,715
68
$167,316
$43,728
69
$175,682
$46,822
70
$184,466
$49,999
71
$193,689
$53,261
72
$203,373
$56,610
73
$213,542
$60,049
74
$224,219
$63,580
75
$235,430
$67,206
76
$247,202
$70,929
77
$259,562
$74,752
78
$272,540
$78,677
79
$286,167
$82,708
80
$300,475

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 ($818,717.00) of exposure.

Every year in addition to the average 3 Year need will cost you an additional $300,475 per year.

1. Interest credited at the end of the year. Hypothetical premium based on $210/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