Long-term Care Insurance (LTCI)

Long-term care insurance is shortly known as the LTCI market has developed significantly.

LTCI policies have several LTC service alternatives, including: 

  1. Home health care.
  2. Respite care.
  3. Hospice care.
  4. Personal care in the home.
  5. Services provided in assisted living facilities.
  6. Adult daycare centres and other community facilities.

Public programs, such as Medicare, also cover certain limited LTC services. As the requirement for LTC support and services will increase and it requires innovation and explore new approaches.

The need to purchase LTCI and is influenced by the persons age and life expectancy, gender, family situation, health status, income and assets stated as follows:

Age and life expectancy: Small age persons are likely to purchase an LTCI policy, as it lowers your premiums. The longer person will live, it increases the need for LTC more.

Gender: According to gender women have needed LTC because, on average, women have longer life expectancies than men.

Family situation: If one of the family members is not available to provide care, then paid care is provided inside or outside the home.

Health status: According to the health category if a family history of chronic or debilitating health conditions could have a greater probability of requiring LTC.

Income and assets: An LTCI policy can be used to protect accumulated assets.

There are various ways to purchase LTCI

 Individual policies: Most LTCI policies are purchased by individuals with the help of insurance agents. Benefits provided by individual policies can differ among different insurers.

Group policies: Some employee offer group LTCI coverage. Employer group plans offer a base plan of benefits with less tenure than individual policies.

Association Policies: Some associations let insurance companies and agents offer LTCI to their members. The benefits of these policies are generally similar to those for individual policies.

The main challenges for insurers and state insurance regulators in LTCI markets arises from older issue year policies. These policies were priced when the LTCI experience used to calculate rates was not fully developed.