Have you considered long-term care insurance. This insurance covers elders and their living arrangement expenses for places like nursing homes. If you were to pay for a nursing home stay on your own, it could cost you $100,000 per year. When you consider that the average nursing home stay is two and a half years, this adds up to $250,000 in total for each person. As you can see, this number can really add up.
This is why most people hire an insurance broker to get long-term care insurance at the best price. However, if you have a large nest egg, you may be tempted to be self-insured and skip out on this policy. Could this be the right play for you? Watch this video to learn more.
In this episode of the Ramsey Show, a caller asks about if long-term care insurance would be right for him. He figures that his current net worth is about 1.1 million. This means that he would have approximately $500,000 left over in net worth if he and his wife spend the average amount of time in a nursing home. This is enough buffer that he could be self-insured if they so choose to do so.