Written By: Jean M. Lown and Lance Palmer

Due to uncertain future income and premium increases as well as the negative ramifications of letting a policy lapse, educators and advisors should consider the advantages of the self insurance option for long term care. Self insurance offers the flexibility of using funds for long term care or basic living expenses if other funds are depleted, and allows assets to be passed onto heirs if no or little long term care is required. However, self insuring would provide only approximately one-third of the insurance coverage provided by a competitive long term care insurance policy. Keywords: long term care, insurance, financial decision making, elderly, retirement

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