Long-Term Care (LTC) Analyzer

Compare buying LTC insurance vs self-insuring. Explore cash flows, NPVs, and the breakeven claim age.

Ages & Timing

Current Age Max Age

Premiums

Annual Premium ($) Premium Inflation (%) Premium End Age Waiver of premium during claim Deductible Portion of Premium (%) Marginal Tax Rate (%)

Benefits

Daily Benefit Today ($/day) Benefit Inflation (%) Benefit Period (years) Elimination Period (days)

Care & Economics

Claim Start Age (scenario) Claim Duration (years) Annual Care Cost Today ($) Care Inflation (%) Probability Need Care (%) Discount Rate (%)

Note: Assumptions are simplified for planning; this is not insurance advice. Confirm policy forms and discuss with an LTC specialist before purchasing.

Summary

Breakeven Claim Age

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Premiums (PV cost)

Benefits @ Chosen Claim Age (PV)

Care Costs @ Chosen Claim Age (PV)

Expected NPV — Buy Policy

Expected NPV — Self-Insure

Expected Advantage of Policy (Buy − Self-Insure)

Breakeven Curve — Claim Start Age

Cash Flow Timeline (Chosen Claim Age)

How to Read This

Breakeven Claim Age: age where PV(benefits) ≈ PV(premiums).
Expected NPV weights outcomes by probability of needing care.
Elimination Period reduces year-1 benefits (daily max × elimination days).
Benefit Inflation compounds until claim starts, then stays flat during claim.
Taxes model partial deductibility of premiums at a marginal tax rate.