Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Friday, February 21, 2014

Buy Insurance or Self-Insure?


Instead of buying long-term care insurance, should young people self-insure?

Manisha Thakor, CEO of MoneyZen Wealth Management, thinks so.  She says, “By taking the money you would have put in long-term-care premiums and investing them in a low cost 60/40 balanced index fund, you can create your own pool of funds to draw on down the road if need be–and avoid the dreaded 'claim denied' scenario."

This advice can work, but a young person will need the discipline to keep investing through illness, kids, and job loss.  They will also need to add these savings on top of savings for a home, kids' education, and retirement.

See Howard Gleckman, Should You Self Insure Against Long-Term Care Risk or Buy Insurance?, Forbes, Feb. 17, 2014.


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