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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:
Self-Insurance/Personal Savings Plan Opportunities:
Self-Insurance/Personal Savings Plan Requirements/Limits:
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).
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.
If you set aside enough money for your long-term care needs, you can choose where and how you receive your care.
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.
You don’t have to worry about qualifying for a long-term care insurance policy.
If you need long-term care and use your money, you might not be able to leave anything to your heirs (family or friends).