Some myths never die.CloseEnough wrote: ↑Wed Mar 22, 2023 6:36 amSounds like you have done your due diligence, strong analysis and reached a good decision. And, you haven't even mentioned the risk that the insurance company won't be there 25-30 years from now when you make claims. Plus, add to that the possibility that the insurance company does not easily pay the claims, and that someone else has to fight that battle. And, the possibility of increases in premiums over the life of the policy. I reached the same conclusion, even without checking what policy might be available to me. Although in my case I am sure my negative bias (which I recognize!) toward insurance in general impacted my decision process. If you are fortunate enough to self-fund this risk, it is much more likely to be a better decision. And, if you are not, the cost of the insurance is a huge drag on your finances, often times not worth it either.MikeG62 wrote: ↑Wed Mar 22, 2023 6:16 am
Consider, as well, the pool of dollars one might accumulate to pay for one's possible LTC costs by investing the premiums that would be paid under a LTCi policy. In addition, one should also consider the tax benefit that would likely arise (current tax rules) from paying for LTC costs out of pocket (perhaps shielding a large portion of one's RMD's and SS and passive income from any income tax).
It's for these reasons that, after being approved for a LTC policy this month, I choose not to move forward with the policy. Lastly, I would add that we are in the fortunate position of being able to self-fund any LTC we might reasonably need and that factored into our decision as well.
BTW, if the cost of an insurance policy is a drag on one's finances, what kind of a drag would it be to one's finances to fund 100% of the cost of long-term care??