LTC Needs Calculator

The LTC Needs Calculator will assist you in determining whether or not to self-insure for long-term care or purchase long term care insurance. If you are married you have a 70% chance that one or more of you will require some form of care. (Source: Newsweek, 1996)

Fill in fields 1 through 28 as they pertain to your personal circumstances and then click the calculate button. Scroll down to view the results.
1. Age at the beginning of the Projection.

2. Liquid Assets held at the beginning of the Projection.
3. Assumed annual growth rate of your Liquid Assets. %
4. Assumed Federal and State Income tax Rates. %
5. Earnings from Employment.
6. Estimated annual increase in Employment Earnings %
7. Year Social Security Benefits will begin.
8. Estimated Social Security Benefits.
9. Estimated annual COLA for Social Security Benefits. %
10. Year that you will begin receiving IRA distributions, Annuities or Pensions.
11. Estimated annual distributions from IRAs, Annuities or Pensions.
12. Estimated annual growth of these distributions. %
13. Age that Other Income flows will begin.
14. Estimated annual Other Income including nontaxable sources.
15. Estimated annual growth of Other Income. %
16. Estimated Federal and State income tax rate on Other Income. %
17. Estimated annual Cost of Living.
18. Estimated increase in annual Cost of Living. %
19. Estimated percentage decrease in Cost of Living when under LTC. %
20. Estimated Daily cost of your LTC.
21. Assumed age that LTC is required. (The age that you will require long term care.)
22. Estimated annual growth in the cost of LTC. %
23. Market Value of your Real Estate at the beginning of the projection.
24. Estimated annual appreciation your Real Estate. %
25. Estimated annual LTC Premiums.
26. If you elect to pay premiums until age 65 enter 65 in the box if not Leave at 0.
27. Number of years that the insured will pay LTC.
{(Single Pay = 1), (10yr = 10), (20yr = 20) or (lifetime = 99).}
28. Number of years that LTC benefits will be paid by the insurance policy.
  

Summary Results: Net Assets
LiquidTotal
If you never require LTC and No Insurance is Purchased.
If you have a long term illness with no LTC insurance.
If you have a long term illness with LTC insurance.
Without purchasing LTC insurance you are exposing   of your assets to LTC spend down.
If you never require LTC you could reduce this loss to of assets by purchasing LTC Coverage.


Loss of assets that you could expect if have a long term illness with no LTC insurance:
Projected net assets if you never require LTC and No Insurance is Purchased.
Projected net assets if you have a long term illness with no LTC insurance.
Estimated total cost of long term care and loss of earnings on liquid assets.

Total Dollars out of Pocket Net of Assumed Income Tax Effect:
Paid out for Long Term Care Costs if no insurance is not purchased.
Paid out for Long Term Care Premiums if the policy is purchased.
Total Dollars Saved if a policy is purchased.

Analysis Assumptions:
The insured is assumed to have a life expectancy of the age that LTC benefits are used plus the benefit period.
The cost of both LTC premiums and LTC costs are fully deductible by the insured.
None of the cost of living expenses are tax deductible.
All earning and expense percentages are held constant throughout the projection period.