New perspectives on the affordability of long-term care insurance and potential market size.
A study of over 6,000 elderly long-term care insurance purchasers shows that the typical policy sold costs $102 per month, covers 5 years of nursing home care and pays $69 per day in benefits. Close to one-third of the purchasers have incomes less than $20,000, most (63%) use some savings to pay for premiums, 37% spend more than 5% of income on policies. Most nonpurchasers cited reasons unrelated to policy cost to explain why they did not buy a policy.
Cohen
M A
MA
LifePlans, Inc., Jerusalem, Israel.
Kumar
N
N
Wallack
S S
SS
D000367:Age Factors; D000368:Aged; D001294:Attitude to Health; D004465:Economic Competition; D006306:Health Surveys; D006801:Humans; D007182:Income; D015273:Insurance Selection Bias; D007353:Insurance, Long-Term Care / Q000191:economics*; D008134:Long-Term Care / Q000191:economics; D009735:Nursing Homes / Q000191:economics; D012306:Risk; D014481:United States