Strategy Comparison
Buy LTCI vs. self-insure vs. hybrid with expected cost, worst-case, ruin probability, and breakeven.
Three-Strategy Comparison
We model three distinct strategies and compare them on expected total cost, worst-case cost, probability of financial ruin, and breakeven analysis:
Buy Traditional LTCI
Annual premiums, benefit period, daily benefit, inflation rider, elimination period. Includes rate increase risk modeling.
Self-Insure
Wealth accumulation path with investment returns, minus expected LTC costs. Includes Medicaid spend-down threshold modeling.
Hybrid Life/LTC
Single premium or 10-pay life policy with LTC acceleration rider and extension of benefits. Death benefit if never used.