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You can use your savings or other personal resources to pay for long-term care.
This is also called "self-insuring". Some personal resources may include money
in a checking or savings account, stocks, bonds, investments, life insurance
policies, pensions, and income. Your family may also want to give you money
towards your long-term care needs. If you choose this option, you should plan
ahead before you need long-term care. Make sure you think about all your
future health care needs and costs.
Long-term care is very expensive. This option may only be practical for people with above average resources.
Listed below are some opportunities and requirements/limits for self-insurance/personal savings plan:
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If you don't need long-term care, you will still have your money that you set aside for long-term care needs. This money is yours. You might be able to leave something to your heirs (family or friends).
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The money you save (set aside) should only be used for your long-term care needs. You might not save enough money to pay for all of your long-term care costs. To be self-insured, you will have to start at a young age, save a lot of money, and stick with this plan for a long period of time.
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If you set aside enough money for your long-term care needs, you can choose where and how you receive your care.
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There may be rules about when you can use your investments for paying long-term care. In some cases, you may have to pay a penalty for withdrawing the money.
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You don't have to worry about qualifying for a long-term care insurance policy.
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If you need long-term care and use your money, you might not be able to leave anything to your heirs (family or friends).
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Page Last Updated: July 2, 2007
Source: http://www.medicare.gov/LongTermCare/Static/SelfInsurance.asp
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