Long Term Care Insurance Essay Example | Topics and Well Written Essays - 1000 words

Long Term Care Insurance - Essay Example There are many reasons why retirees have suddenly started to consider the worth of long term care insurance policies. The main reason is however the dramatic increase in the insurance premiums. Buying insurance policies for long term care is basically gambling where risks, cost, and benefits can be calculated. These policies are not like the other insurances where the costs and risks are low but benefits are high; such as fire insurance. The insurance policymakers use tactics to sell their insurance policies by touting scary advertisements about probabilities of seniors spending life in nursing homes. Where the insurance premiums are too high, the benefits are comparatively lower. With insurance premiums of about $2500 annually, 60 year olds and other Americans do not purchase the insurance.The second main reason is due to several misconceptions that Americans have about long term care and insurance policies. The lack of awareness programs have led to many misconceptions which were h ighlighted during several surveys that took place recently on why Americans won’t buy long term care insurance. The biggest misconception that people had was that Medicare is going to cover their long term care. The truth is it does not due to the current system of long term care, the benefits provided by Medicare and Medicaid has reduced. Many Americans also believe that they are too young to buy long term care insurance while others also believe that long term care is already included in their health insurance policy.