Episode 5 of 6
The Long-Term Care Question
Carla watched her father's retirement savings disappear into long-term care costs. A nursing home in Phoenix averages $8,500/month. She models three options: self-insure, buy a traditional LTC policy, or use a hybrid life/LTC policy.
Key Insight
A 3-year nursing home stay costs $306k. A hybrid life/LTC policy at age 55 costs $4,200/year and provides $250k in LTC benefits plus a $150k death benefit. Self-insuring requires reserving $306k — money that earns nothing while waiting for an event that may never happen. The hybrid policy costs $42k over 10 years to protect $306k in assets.
Model This Scenario