Long-Term Care Insurance Fundamentals

Summary

This practice note discusses long-term care insurance (LTCI). It 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 designed for and often marketed to senior adults who are usually deemed to be vulnerable consumers. Even if the product is sold to middle-aged consumers, the nature of LTCI is very complex because it involves myriad benefit options, various methods of premium financing, and many other characteristics. The National Association of Insurance Commissioners (NAIC) has promulgated regulatory standards, consumer guides, and model acts concerning LTCI upon which states may base their statutes. The NAIC has deemed LTCI important enough to establish a task force that encompasses LTCI under the broad penumbra of "senior issues."