If self insuring, can you share your calculations?
I do have LTCi but ran some calculations to see what it would take to "risk financial stability by not buying LTCi" (rfsbnbLTCi
At 60 if one had investable assests of $2,055,000 per person and that grew at 5% and expenditures were $80,000 pre-tax and personal inflation was expected at 3% then at age 85 they would have assests of $1.86M. If they needed LTC that year then anticipated expense could be $322,500. ($100,000 today at 5% inflation) They would be BROKE on 5 years! Then Medicaid or whatever it's called then, SOYLENT GREEN, would kick in. If the need came before 25 years the results would be worse.
In my situation, when I bought over 10 years ago I was on the cusp of hopefully being able to successfuly rfsbnbLTCi
. And at that time I also had to get over the hurdle of buying something 20, 30, 40 years into the future. That was a big thing to get over for me. Now thanks to the internets I came to the realization that I can quit at any time and all I am out is the amount I paid for coverage during that time! Now I'm paying less than a pack of cigarettes a day for lifetime/5% inflation coverage. I think the insurance will be there the next 10 years so why not keep it? So IF my coverage pays as contracted and premiums double every 10 years as anticipated by me then in 25 years if the parameters are the same as the person above who rfsbnbLTCi
then I would receive about $1,800.000 in tax free benefits over 5 years and I would also have the ability to choose what to do with the $1,800,000 in my portfolio. Well my portfolio might be a little smaller because I had expenses of $70,000 for LTCi over 25 years. Maybe it would be larger because I did not have to be so conservative investing because I have the insurance coverage.
So year 30 I'm living large spending an extra $100,000 a year on luxuries (private room/massages/better food/ company)! They've found the cure and I leave with my nest egg pretty much in tact. rfsbnbLTCi
guy broke and on the streets. For the price of a pack of cigarettes a day!