The Financial Desirability of Long-Term Care Insurance Versus Self-Insurance

November 2006
Journal of Financial Planning;Nov2006, Vol. 19 Issue 11, p54
Academic Journal
The article compares the financial results when comparing long-term care insurance with the opportunity cost of investing the required funds at several different rates of return. Data from the 1999 National Nursing Home Survey and a study from the "New England Journal of Medicine" is used to determine the probability of needing nursing home care at different age ranges. The authors found that buying insurance is preferred over self-insurance for almost all females and most males, although aggressive investors may benefit from self-insurance.


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