Optimal Finance Daily - Financial Independence and Money Advice 3248: Long-Term Care Insurance is a Waste of Money by Mike Ballew of EggStack on Wealth Preservation
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Aug 15, 2025 Explore the surprising truths about long-term care insurance and why it may not be as essential as you think. The discussion reveals how misleading statistics inflate its necessity, advocating for self-insurance instead. Investing your potential premiums could lead to greater financial security and flexibility in retirement. Plus, there's a thought-provoking look at the benefits of passing on savings to your heirs, something traditional insurance doesn't allow. Rethink your approach to wealth preservation in this eye-opening conversation.
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70% Figure Is Misleading
- The oft-cited 70% figure for needing long-term care mixes mild in-home help with severe institutionalization.
- Most long-term care consists of family-provided in-home assistance, not nursing home stays.
ADLs Explain Care Intensity
- Disability is measured by Activities of Daily Living (ADLs) and many need help with only one ADL.
- When needs are minor, family members usually provide care rather than paid facilities.
Nursing Home Stays Are Usually Short
- Most nursing home stays are short: under 90 days for the majority, and only 5% exceed two years.
- Long-term care insurance often targets rare, long-duration cases rather than typical short stays.