Both paths start with the same money, . Self-fund: all of it stays invested at your assumed return and pays for care when it comes. Insure: part of it buys the coverage, and the rest stays invested at the same return. When care ends, which path leaves you with more? This sample uses a married couple, both 66 today. The answer depends on when care starts, how long it lasts, and what return you assume, so this shows every combination.
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“Insure It or Pay for It Yourself?” · 9 min read →
You usually don't need to insure the full cost of care, only the part your income and savings can't comfortably carry. Start with what care costs where you live, by type and level of care: Genworth / CareScout Cost of Care. Then fill in the boxes below, all monthly, in today's dollars. The numbers already in them are an example.
| Guaranteed incomeSocial Security, pension, annuity | Living expensesThe household | Cost of careFrom CareScout | Monthly need | From savingsafter tax, at your safe draw | The gap | |
|---|---|---|---|---|---|---|
| Care isn't needed | $ | $ | — | |||
| One of you on care | $ | $ | $ | |||
| Both of you on care | $ | $ | $ |
Each box shows how much more one path leaves when care ends, in thousands. Gold: insurance leaves more. Navy: self-funding leaves more. A negative self-fund balance means care had to be paid from your other savings. Click any box to see the details below.
Each box shows the return your invested money would have to beat, every year, for self-funding to leave more than insurance in that scenario. If you can't count on beating that number, insurance is the better choice. Example: if a box says self-fund must beat 2.8% and you expect to earn 7%, self-funding wins there.
Hover over (or tap) the chart to read any year.
This sample is a couple at 66. Your ages, health, the money you'd use, and the return you can count on all change the answer. I'll run it on your real numbers, side by side, and show you where your crossover is.
Hypothetical projection for education, not a carrier illustration or an offer. Premiums are scaled from The State Life Insurance Company illustrations dated October 2026 for a sample couple, both age 66, Preferred Non-Tobacco, joint coverage with 3% lifetime Continuation of Benefits (COB): Indexed Annuity Care base annuity $109,919 and COB $90,969 up front or $6,254 a year, and Asset Care $157,866, all at $3,700 a month each; other amounts are scaled estimates. Your premiums depend on your ages, health, state and underwriting. The yearly COB premium is guaranteed level, is paid each year for life, stops once either of you goes on claim, and the COB coverage lapses if payments stop. Both paths start with the same money; whatever isn't spent on premiums stays invested at your assumed return, steady every year. Real returns vary, and care that starts in a down market costs more to self-fund. Care costs the full monthly benefit, rising 3% a year, and the scenario ends when care ends. Annuity Care pays care first from the account, then from the COB for life; Asset Care pays from its death benefit for 2 years, then from the COB for life. "Leaves" means invested money plus any annuity account value and remaining death benefit, before income taxes. Taxes are not modeled; benefits for qualified long-term care are generally income-tax-free when funded with non-qualified money, and IRA funding changes that. Guarantees are subject to the claims-paying ability of the issuing company. Educational only, not tax, legal or investment advice.