Question

Part 1: Age is not the primary determinant for long-term care. Comment on this statement, explaining why this is or is not true.

Part 2: Why has private long-term care insurance not gained popularity with consumers?

Answer 1

1. There are often functional impairment that the individuals may suffer from, besides it ensuing dependency, which are hence more concerning than age. There may be many elder people who suffer from functional impairment to certain extent however, not all may need long-term care. Therefore, age is not the primary determinant. Had such been the case, then all the aged individuals would have needed to resort to long-term care. There are people who are aged but are still going relatively strong to work and be dependent on their own.   It is here, when the degree of functional impairment and dependency, become primary criteria, surpassing age criterion. In fact, some elderly individuals may also resort to adaptive devices however not feel the need of long-term care. While, the degree of dependency or functional impairment may even be witnessed on children and youth who may suffer from various limitations physically or mentally. These may also be the people who need long-term care. Therefore, the above statement is correct.

2. in private long-term care insurance, choice itself is the root cause of problem owing to several of those available before the public. Besides, the premiums are steep, and basic costs may also depend upon what all elements these insurances cover such as the riders or the benefits to the insurers, the minimum waiting period before the initiation of those benefits, the coverage period, inflation protection, etc. Hence, it becomes undesirable to the potential insurers.