Thursday, February 16, 2017
Deciding between long-term care insurance and self-insuring is a difficult question many people face. It is often a matter of whether you want to retain the risk or share it with an insurance company. Insurance companies offer various products, so it is important to understand what you would like to cover and what premiums you can afford. If you decide you want to purchase a long-term care policy, there are several considerations to keep in mind. Some points to examine include determining how many years to insure for, changing policy premiums, deciding between a cash plan v. reimbursement plan, and reviewing any waiting periods. These considerations can make long-term care insurance advantageous, but the longer you take to use the benefits, the more sense it makes to self-insure.
See Roxanne Alexander, LTC – To Buy or Not to Buy, Evensky Katz Foldes Financial, February 14, 2017.
Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.