If you really mean this, the only smart way to accomplish this is to have separate long-term care savings. If you don’t do this, and do wind up needing care, your life savings may have to be drawn upon to pay care costs. Self-insuring may cause you to spend money you intend to live on in retirement, or leave a legacy with. It may also result in less freedom/fewer care choices and unnecessary stress for your spouse and family. According to the 2015 Genworth Cost of Care Survey, average assisted living rates in TX are $42,540 a year, nursing home private rooms average $68,680 a year.
I’ll self-insure (2)
You will have to save very aggressively to accumulate what LTCi will generate. Use this tool to see how much you’ll have to save to self-insure for LTC or call me and I’ll walk you through the arithmetic to prove this, using all of your own numbers and assumptions.
The government pays for care
The government doesn’t pay for the broad range of care options many people want.
If you plan on living a long life, waiting to buy LTCi will not save you money. In addition, if your health declines, LTCi may cost a great deal more, or you may not qualify for it at all.
I won’t need care/LTCi is a rip-off
If you believe this, you’re at odds with every nationally recognized financial expert I know of. If you’re middle class, even our federal government and Dear Abby advise purchase of LTCi. The odds are high that you may eventually need care, and care costs can be catastrophic.
My kids will take care of me
You don’t believe this, do you? Do you want to burden them?
I don’t need an insurance agent; I’ll do it myself
Then why haven’t you done this yet? LTCi is has a few too many moving parts for the typical person to tackle alone. There’s so much to it that often people feel overwhelmed by the task, so nothing gets done. Some people do buy LTCi on their own, but never quite develop a full sense of confidence in their decision. If you’re going to spend the money that LTCi costs, you should be absolutely confident about what you’re doing. You should have a plan you understand well, that does exactly what you want it to do, and fits into your budget. In the same amount (or less) time that it would take for you to try to plod through your LTCi decision on your own, you could have a more pleasant and less stressful experience working with me. National media and national experts recommend that you work with an LTCi specialist. My clients agree.
LTCi Is Expensive
It doesn’t have to be. Rates vary depending on your age, marital status, health, and what features you choose. The big picture is that if you need care, it generally takes just a few months or less, to collect the entire premium you paid in.
The information above strictly reflects my personal opinions. Always feel welcome to call me at 713-988-4671, or contact me to talk about any of this.