Famosos Que Pareciera Comparten La Misma Cara // That seems Celebrities Sharing The Same Face

- marzo 11, 2015

he best way to make long-term-care insurance accessible—and affordable—for more people might be to change what has become gospel in the business: the use of short “elimination periodsThat’s the thinking in a new article in Financial Planning: “How to Fix LTC Insurance,” by Michael Kitces, director of research at Pinnacle Advisory Group in Columbia, Md. Mr. Kitces notes that long-term-care insurance originally was created to guard against the “high-impact but lower-probability risk of needing long-term care assistance at an advanced age.” In other words, relatively small numbers of people would need long-term care—or so statistics indicated—but those who did would face steep bills. Today, though—thanks to improvements in medicine and a longer life expectancy—the chances of needing long-term care are increasing. (Mr. Kitces says the risk of a person age 60 needing long-term care is estimated at 50%; for a 50-year-old woman, the figure could be as high as 65%.) At the same time, research suggests long-term care might be a “lower-impact event” than most people think. Example: According to research from the American Association of Long-Term Care Insurance, 75% of nursing-home stays last no more than three years. In short, long-term care has turned into a high-probability event with a large number of lower-cost claims, Mr. Kitces says.