Financial
Counseling and Planning
The Journal of the
Association for Financial
Counseling and
Planning Education
Volume 15(2),
2004
Long Term Care
Insurance Purchase: An Alternative Approach
Jean M. Lown1 and Lance Palmer2
- Due to uncertain
future
income and premium increases as well as the negative ramifications of
letting a policy lapse, educators and advisors should consider the
advantages of the self insurance option for long term care. Self
insurance offers the flexibility of using funds for long term care or
basic living expenses if other funds are depleted, and allows assets to
be passed onto heirs if no or little long term care is required.
However, self insuring would provide only approximately one-third of
the insurance coverage provided by a competitive long term care
insurance policy.
Keywords: Long term care, Insurance, Financial
decision making, Elderly, Retirement
1. Jean M. Lown, Professor, Family, Consumer, & Human
Development, UMC
2905, Utah State University, Logan, UT 84322-2905. 435-797-1569;
FAX:
435-797-3845. E-mail: Lown@cc.usu.edu
http://cc.usu.edu/~lown/
2. Lance Palmer, Department of Housing and Consumer Economics, 111
Dawson Hall, University of Georgia, Athens, GA 30602-2622, phone 706-
542-4916, fax 706-542-4397, E-mail: lpalmer@fcs.uga.edu