With life expectancy increasing and rapidly rising health care and living costs, you may be considering purchasing or maintaining long-term care insurance coverage. Despite the emotional appeal, these policies have some serious drawbacks. Given the skyrocketing premiums, and limited duration and amount of potential benefits, you’re better off shunning this coverage and self-insuring against this risk instead.

The world population is aging at the fastest rate ever, as people are living longer. It’s estimated that 70% of today’s 65-year-olds will eventually need some type of long-term care. For many seniors, this simply means in- home assistance with bathing, dressing, or other simple living tasks. However, it’s estimated that 37% of all 65-year- olds will need long-term care in an assisted living facility or nursing home—at a cost that can be...