Advantages of Long Term Care Insurance Page 22

The final policy simulated, PENSIONS, assumes that long-term care insurance is provided to all persons aged 65 and over who get at least $500 in annual pension benefits. Qualifying persons receive a long- term care insurance policy that provides a $50 a day inflation adjusted two-year nursing home benefit after a 90-day deductible period. The objective of this alternative is to test the addition of long-term care insurance as a retiree benefit for those receiving at least a minimal pension. This type of plan might be offered to retirees in lieu of some pension benefits.

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