Am I rich? Are you rich? 
A great book was published a few years ago, The Number by Lee Eisenberg, wherein we are asked to determine our individual number – the amount of money we think we should have to base our retirement upon. Everyone has their own “Number” or their own yardstick for determining whether they are rich and, of course, once people hit there “Number” we often increase it as we quickly realize that the income generated from those assets may not be what was expected. Being rich is an individual determination, but one thing is certain for all – whether rich or not – losing the money one has accumulated will not keep them rich or help sustain the wealth of their heirs.
To maintain wealth, we all insure against the risks that may affect that wealth and may decrease our “Number” including life insurance, auto, health, umbrella policies, disability and more. I never hear the question raised with these types of policies, “Should I self-insure?” However, true story, when I asked my financial advisor several years ago about long term care insurance he looked me in the eye and said I should self-insure.
With the Return of Premium rider, yes this makes the insurance more expensive, but with the tax deductibility of premiums, purchasing a long term care policy basically creates no cost to one’s estate. With a no-cost solution available, the advice to self-insure – or the exercise of even thinking about it – becomes absurd for the well-to-do, rich and ultra rich.
Here is an article about the true costs of long term health care when self-insuring:
How Investment and Tax Surcharges Increase the Cost of Long Term Health Care
