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LTC Bullet:

"What's the Best Reason to Buy LTC Insurance?"

Friday October 1, 1999


George F. Williams' column "What's Going on in the Life Insurance Business" in the October 1999 issue of "Life Insurance Selling" magazine reviews the Center for Long-Term Care Financing's latest white paper.

The column, entitled "What's the Best Reason to Buy LTC Insurance?" says "The Myth of Unaffordability: How Most Americans Should, Could and Would Buy Private Long-Term Care Insurance" makes "interesting reading."

Here's a brief excerpt, but watch for the full article in the magazine's October issue to be mailed to subscribers next week. A phone number for the magazine in case you want to inquire or subscribe is 314-421-5445.

"With the ranks of senior citizens expected to swell in the years ahead, the [Myth of Unaffordability] report says the outlook for Medicaid-(or Medicare-) funded long-term care is bleak. To save Medicaid for the people who really need it and to compel the public to face the facts of long-term care, the report's authors advocate an approach they call LTC Choice. Under this system, the government provides comprehensive information about the potential long-term care expenses to all citizens, perhaps when they apply for Social Security or Medicare. Then it gives them a choice. People can obtain private LTC insurance (or self-insure, if they're wealthy enough), or they can let the government take care of them-but with a loan, not a grant. Whatever the government paid to cover a person's long-term care expenses, it would recoup with interest from that person's estate, which would be pledged as collateral.

"As the report's title implies, the authors believe the majority of people can afford LTC insurance. They assume that premiums would take up no more than 6% of a person's income and that the elderly would be willing to fund premiums at least partly by liquidating assets…

For more information about "The Myth of Unaffordability," call (206) 447-1340 or click here