Can I Self-Insure Against the Risk?

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Hypothetical Annual Premium of $3,111 1
Premium Saving at 4%
33% Tax Bracket 		Age Annual Cost of Care
5% Inflation
$3,111
52
$124,100
$6,305
53
$130,305
$9,585
54
$136,820
$12,953
55
$143,661
$16,411
56
$150,844
$19,962
57
$158,386
$23,608
58
$166,305
$27,352
59
$174,620
$31,196
60
$183,351
$35,143
61
$192,519
$39,196
62
$202,145
$43,357
63
$212,252
$47,630
64
$222,865
$52,017
65
$234,008
$56,522
66
$245,708
$61,148
67
$257,993
$65,898
68
$270,893
$70,775
69
$284,438
$75,783
70
$298,660
$80,925
71
$313,593
$86,205
72
$329,273
$91,626
73
$345,737
$97,193
74
$363,024
$102,909
75
$381,175
$108,778
76
$400,234
$114,804
77
$420,246
$120,992
78
$441,258
$127,346
79
$463,321
$133,870
80
$486,487

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 ($1,325,591.00) of exposure.

Every year in addition to the average 3 Year need will cost you an additional $486,487 per year.

1. Interest credited at the end of the year. Hypothetical premium based on $340/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