Can I Self-Insure Against the Risk?

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Hypothetical Annual Premium of $3,660 1
Premium Saving at 4%
33% Tax Bracket 		Age Annual Cost of Care
5% Inflation
$3,660
52
$146,000
$7,418
53
$153,300
$11,277
54
$160,965
$15,239
55
$169,013
$19,307
56
$177,464
$23,484
57
$186,337
$27,773
58
$195,654
$32,177
59
$205,437
$36,699
60
$215,709
$41,343
61
$226,494
$46,111
62
$237,819
$51,007
63
$249,710
$56,034
64
$262,196
$61,196
65
$275,306
$66,496
66
$289,071
$71,938
67
$303,525
$77,526
68
$318,701
$83,264
69
$334,636
$89,155
70
$351,368
$95,204
71
$368,936
$101,415
72
$387,383
$107,793
73
$406,752
$114,342
74
$427,090
$121,066
75
$448,444
$127,971
76
$470,866
$135,061
77
$494,409
$142,341
78
$519,129
$149,816
79
$545,085
$157,491
80
$572,339

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 ($1,559,526.00) of exposure.

Every year in addition to the average 3 Year need will cost you an additional $572,339 per year.

1. Interest credited at the end of the year. Hypothetical premium based on $400/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