Recognize that this is our largest financial risk, the largest unknown, when we reach retirement age. It covers the potential cost of assisted living, home health care or living in a community facility that can be astronomical.
My suggestions to help reach a conclusion on this question:
- You only need to worry about this if you have money in excess of projected lifetime living expense (about 1/2 of my upper middle income clients do not)
- It’s really your kids’ problem, not yours. What’s at risk is the kids inheritance. If you ask the kids, they will usually say “insure”.