Originally Posted by cbo111
We both keep $250K term policies until age 65 as an alternative to long term care insurance. Of course this strategy assumes the long term care event results in death. I think this is a reasonable assumption and I don 't have to worry about insurance premium hikes or carrier defaults.
Would you self-fund for LTC after age 65? 63% of those in LTC are over age 65 (and you'd have to die before age 65, not just be in need of LTC, for the life insurance idea to work). Of the total population over age 65, 68% will be eventually become cognitively impaired or be unable to perform at least 2 ADLs (source
), so the life insurance wouldn't help there, either.
I do like the stability of the life insurance product (compared to LTCi), but for us it wouldn't fill the need. Now, if I thought we could self-fund LTC after age 65, it would be an idea worth considering for us.