Can I Self-Insure Against the Risk?

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Hypothetical Annual Premium of $3,294 1
Premium Saving at 4%
33% Tax Bracket 		Age Annual Cost of Care
5% Inflation
$3,294
52
$131,400
$6,676
53
$137,970
$10,149
54
$144,868
$13,715
55
$152,111
$17,377
56
$159,717
$21,137
57
$167,703
$24,997
58
$176,088
$28,961
59
$184,892
$33,031
60
$194,137
$37,210
61
$203,844
$41,501
62
$214,036
$45,907
63
$224,738
$50,431
64
$235,975
$55,077
65
$247,774
$59,847
66
$260,163
$64,745
67
$273,171
$69,774
68
$286,830
$74,938
69
$301,172
$80,240
70
$316,231
$85,684
71
$332,043
$91,274
72
$348,645
$97,014
73
$366,077
$102,908
74
$384,381
$108,960
75
$403,600
$115,174
76
$423,780
$121,555
77
$444,969
$128,107
78
$467,217
$134,834
79
$490,578
$141,742
80
$515,107

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 ($1,403,579.00) of exposure.

Every year in addition to the average 3 Year need will cost you an additional $515,107 per year.

1. Interest credited at the end of the year. Hypothetical premium based on $360/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