#insurance
5 articles
A 60-Year-Old Pays ~$1,900/Year for $165K of Long-Term Care Coverage — Does It Beat Self-Funding?
The 2025 AALTCI Price Index shows LTC premiums roughly triple from age 55 to 70 for the same benefit. We compared buying young against just investing the premium instead.
Whole Life vs Buy-Term-and-Invest: $383K vs $95K at Year 20
The same $8K/year, two different paths. Whole life delivers $95K cash value at year 20; term + index fund delivers $500K death benefit + $383K portfolio. The unbundling premium is real.
HDHP Saves $1,800/Year if You're Healthy. Costs $3,400/Year Extra if You're Not.
Low utilizer (under $1K healthcare/yr): HDHP wins by $1,500-2,500 with HSA tax shield. High utilizer ($8K+): low-deductible plan wins by $2-4K. Mid utilizer: coin flip. The break-even threshold is your honest forecast of next year's spending.
Family of 4, $85K Income, $300K Mortgage: DIME Says $1.14M Coverage (Term Costs $50/mo)
DIME framework: Debts $315K + Income replacement $1.275M + Mortgage already counted + Education $200K = $1.79M needed. Subtract existing $650K (savings + spouse income capacity) = $1.14M coverage gap. 20-year term: $40-60/month.
'Pay $60K, Get $100K' Is a 2.6% IRR. Here's Why.
Insurance brochures advertise the headline gain. Run the same numbers as IRR — accounting for the fact that you paid in over 20 years, not all on day 1 — and the return drops to bond-fund territory.