LTC premiums vs. Self-Insure resources

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A440
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Location: NJ

LTC premiums vs. Self-Insure resources

Post by A440 »

Can anyone recommend any web resources that compares the cost of LTC premiums vs investing the same amount in taxable accounts?

I can across this article from 2004 that was helpful (https://afcpe.org/assets/pdf/vol1521.pdf) but I am looking to do some more research on whether to invest the cost of LTC premiums to self-insure vs. continuing to pay the premiums for a LTC policy.
I don't know what the future holds, but I know who holds my future.
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TomatoTomahto
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Re: LTC premiums vs. Self-Insure resources

Post by TomatoTomahto »

It's insurance. Would you ask if putting your homeowners insurance premiums into investments instead makes sense?

We self-insure for LTC. Some long-ago policies were an okay deal; new ones IMO are not. But, the self-insurance doesn't mean we have an LTC account that we contribute to, hoping that it suffices if we require LTC. We save into accounts that will fund our retired life, whether or not we require LTC.
I get the FI part but not the RE part of FIRE.
adamthesmythe
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Joined: Mon Sep 22, 2014 4:47 pm

Re: LTC premiums vs. Self-Insure resources

Post by adamthesmythe »

To run the numbers, start by writing down when you will go into long-term care and how long you will stay before you die.

Anything else is probabilities and self-examination to determine your level of risk tolerance.
dhodson
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Joined: Mon May 24, 2010 3:03 pm

Re: LTC premiums vs. Self-Insure resources

Post by dhodson »

additionally long term care insurance doesnt guarantee the premium so you would also have to guess when and by how much premiums will rise. There are very few limited pay polices at this time.
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