Long-Term Care Insurance Financing


Summary

This practice note discusses payment mechanisms for long-term care insurance (LTCI) policies and potential liabilities that can arise from this type of coverage. LTCI is a personal-lines product classified as a form of "life and health" insurance. Many states designate portions of their insurance codes to LTCI because it is complicated and designed for senior adults, a vulnerable population. Frequently, that population does not have insurance-related life experience. They may be conversant with everyday insurance products such as automobile and homeowner's insurance, but the intricacies of other types of insurance are likely foreign to them and their families.