Lown, 2004(2), Long Term Care Insurance Purchase: An Alternative Approach

Counseling and Planning

The Journal of the
Association for Financial
Counseling and
Planning Education

Volume  15(2),

Long Term Care
Insurance Purchase: An Alternative Approach

Jean M. Lown1 and Lance Palmer2

    Due to uncertain
    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;
435-797-3845. E-mail:  Lown@cc.usu.edu 


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