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[quote=Anonymous]I'm sorry OP about your LTC insurance woes!  I think you might need to do a "sunk cost" analysis.  Is it worth it to keep paying into this or is it better to cut your losses now and self-insure with some assets and the amount you would likely spend on premiums going forward?

I'm hoping that the vast number of Baby Boomers going through this process in the coming years is going to pave the way (and leave a lot of facilities angling to fill open spaces) for me (in "Gen X"). I'm in that "in-between category" where I have too many assets to want to just spend them down and live on Medicaid, but not enough not to worry about the costs.  I have mentally set aside 200k in my assets to be for 'end of life' needs instead of having LTC insurance. I have also toyed with using a small amount of money for a deferred low-cost annuity that would kick in during old age as part tax shelter, part "longevity insurance."  That way if I did have to spend down my assets, I'd still have a little something trickling in besides SS.  Haven't fully decided yet, but I think 200k in today's dollars is the "right" amount--3 years in a LTC facility would run on average 240k (80k/yr) so between assets and SS, it could handle that.[/quote]

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