I don’t know about that though I continue to evaluate whether I should drop my good LTCi policies, with sunk in premiums of $60k over 22 years of buying my wife and me 5 years of LTC coverage at maximum benefits of $613k each, inflation adjusted. The issue here isn’t whether I can self-fund, surely we can do that with existing funds and the HSAs are minor resources for this expensive potential exposure of LTC. The issue for us is whether transactionally it’s wise to ring fence some of the exposure by transferring some of the exposure to an insurer.My conclusion is exactly the opposite of this. Which is that someone maxing out HSA for decades should avoid LTCi entirely because they are very likely to have enough to cover LTC self-funded; indeed it is the only use for that HSA balance in the hundreds of thousands.If you want to leverage HSAs for LTC, I think one should consider using the HSA for paying premiums for a “good” LTCi policy.
I am very risk adverse to long goodbyes and financially scrambling funds to pay for LTC (based on personal experiences with these situations for family members.) For now, LTCi brings me peace and some off-loading of long goodbye exposure.
Statistics: Posted by ChrisC — Thu Apr 04, 2024 1:45 pm — Replies 28 — Views 2216