Over the years, there have been many people who have wondered why long term care hasn’t been included with regular insurance policies. Although it would make sense and might even make the costs more affordable for people in the long run, it seems that most of the industry has never even considered packaging long term care with regular insurance. This is unfortunate for a few reasons, because some studies have suggested that packaging long term care in with other insurance policies would be more profitable for everyone involved.
The fact of the matter is that if long term care were packaged with regular insurance or other forms of insurance, it would promote more awareness. Most people don’t even know about long term care insurance until they need it the most; at that point, they are at an age where their premiums are so expensive, it’s difficult for them to be able to afford the care. If they invest in the care insurance while they’re younger, their premiums can only be a few hundred dollars; this is a huge contrast from the thousands of dollars that is can cost in the long run when you’re older. Long term care being packaged with a regular insurance plan or other plan would encourage for policyholders to ask what it’s for, how much they should pay into it, and learn more about what it covers. Most people make the mistake of believe that Medicare is going to cover their long term care, but it rarely ever does -- and when it is able to, the coverage isn’t nearly enough.
There have already been studies which have shown that people are becoming more interested in life insurance policies with optional long term care insurance coverage provided. The logic here is that even if someone doesn’t use their long term care insurance, they will have a life insurance policy that will be able to pay out to their family when that individual dies. This can be an enticing option for many people because they want to feel as if their investment isn’t going to waste. A lot of people don’t invest in long term care insurance because they don’t know if they’re ever going to actually use it; if they don’t use it, they don’t want to feel as if they’ve been paying off those expensive premiums for nothing and that all of their money is lost.
If long term care insurance were packaged with another plan, more people would be interested in investing in it. They would feel as if they were essentially getting two insurance plans for the price of one. If they didn’t understand long term care insurance or didn’t feel like they would ever need it, they would still be getting benefits from their regular form of insurance, whether that’s for health insurance, life insurance, or otherwise.