Dear Dave,

I’ve been researching long-term care policies. Can you reach a point financially where you can self-insure long-term care needs, and not buy a long-term care insurance policy?

Paul

Dear Paul,

It’s possible, mathematically speaking, if you have the resources available to pay for the care you’d receive in a nursing home or similar facility for about 20 years. Not many folks have that kind of money, though. I think it’s a large enough bill that it makes sense to transfer the risk to a long-term care insurance policy.

Keep in mind, too, if you’re married you have to think about your spouse, and make sure they have enough to live on comfortably at the same time. That’s a lot of money. And that’s why I advise virtually everyone to put good, long-term care coverage in place at age 59 or 60. It can mean the difference between living with dignity, or having to depend on the government!

—Dave

* Dave Ramsey is CEO of Ramsey Solutions. He has authored seven best-selling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 16 million listeners each week on 600 radio stations and multiple digital platforms. Follow Dave on the web at daveramsey.com and on Twitter at @DaveRamsey.