More people are turning 65 now than in the history of our country, and long-term care insurance (LTCI) products are going to be critical for families to ensure their loved ones receive high-quality care.
The LTCI market is going to be very important to the future of our country, and I think government at the state and federal levels should continue to create tax benefits for companies operating in the market and expand the tax advantages already offered to individuals who purchase policies. We need to have a strong, stable market to provide the LTCI products that are going to be needed to mitigate the ever increasing costs of care as our nation ages.
So, what could companies do to help create that market?
I'd like to see companies offer more cash plans, which allow policyholders to opt to receive a percentage of their home health care benefits in the form of cash. Cash benefit models can be a quality alternative to the traditional reimbursement models, and they provide flexibility, which is so important when evaluating care options.
In addition, I would like to see more policies with calendar-day elimination periods rather than the more typical service-day elimination periods. Policies that follow calendar guidelines allow policyholders to access their benefits more quickly when they need them, rather than being locked in to policies that stipulate care for a certain number of days of service.
I also think that companies need to start considering and addressing the ways in which care will be delivered in the future. We're already seeing the development of robotic caretaking technology, for example, and I think policies will need to start addressing changing delivery systems.
I would like to see a guaranteed premium/rate guarantee. Some companies will include a 5-year guarantee and with one carrier in some states, the policyholder can do a 10-pay with a 10-year rate guarantee. Stability is a concern for most people.
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