Not everyone needs LTC insurance. For some, self-funding or hybrid approaches may be better. Understanding the trade-offs helps you choose the right strategy.
The Self-Funding Approach
Self-funding means setting aside assets specifically to cover potential care costs instead of paying insurance premiums.
Advantages
- Keep your money if you never need care
- No premium increases or policy changes
- Full flexibility in how funds are used
Disadvantages
- Extended care could deplete entire savings
- Care costs may exceed what you've saved
- Spouse's financial security at risk
Hybrid Products
Life insurance with LTC riders or annuities with care benefits offer a middle ground—you get something whether or not you need care.