Mercer Advisors
Sharing Knowledge

Question

Should I buy long-term care insurance or self-fund?

Answer

The right choice depends on your assets, where they’re held, and your risk tolerance. Self-funding from a taxable account avoids premium costs but ties up capital and creates opportunity cost. Funding care from a pretax retirement account adds tax drag. A hybrid policy can protect your portfolio from a catastrophic care event while preserving a death benefit if you never need care.

Related FAQs

Where can I find help planning for long-term care costs?

What does Medicare cover for long-term care?

Is long-term care insurance worth it if I have significant assets?
Insurance Solutions Retirement Asset Protection Retirement Planning Health & Wellness Long-Term Care Living in Retirement Healthcare & Medicare Protecting Your Legacy FAQs
Last Updated Sept. 29, 2026
Previous Next

Further Learning

Retirement Article

What To Handle Before Dec. 31 and What Can Wait

A year-end financial checklist sorted by whether you’re employed, retired, or taking required minimum distributions (RMDs). Plus the items that don’t have December deadlines.

Retirement Article

Roth Conversion Strategy for Low-Income Years

A Roth conversion strategy during low-income years may help you shift pretax savings to tax-free growth. Learn how to coordinate conversions with IRMAA, ACA, and Social Security.

Financial Planning Article

What Is a Fiduciary Financial Advisor?

A fiduciary financial advisor is legally bound to act in your best interest. Learn what fiduciary duty means, how to verify status, and why fee-based matters.

Tax Planning Article

Before You Sell Your Home, Consider This Tax Strategy

Converting your home to a short-term rental before you sell can pair a cost segregation study with the Section 121 exclusion. Here’s how it works.

Back to Sharing Knowledge

About Mercer Advisors

We exist so you don’t have to worry about money. For more than 40 years, we’ve taken the sophisticated, time-tested approach that many ultra-high net worth individuals use to help manage their financial lives and made it accessible to more families.

Explore Our Solutions

Financial Planning
Estate Planning
Tax Planning & Preparation
Insurance Solutions
Investment Management
Trustee Services

Want to learn more about Mercer Advisors?

Let’s Talk