Private room nursing home costs average about $78,000/year (2009) but range from a low of $65,000 in Mississippi to $165,000 (more than double) in Connecticut, with New York not far behind that number.
The cost to you for a $150 daily benefit for a 3-year period at age 65 is about $3,000 per year.
I have run the numbers and found that, in general, saving/investing that premium money will only provide you with about a 1/2 year of this 3-year benefit. As stated in a previous post on LTCI, after inflation, you may find that the benefit you paid for with these premium dollars may result in still being under-insured by half.
But...interest rates, inflation and years before needing the care are all variables in that calculation and can change the results.
An Introduction
Hi. Welcome to BourGroup and my blog. Phil
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.