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Flashcards: Chapter 3, card 16

P

Phani Vasantarao

Member
Hello,

With regards to the flashcard above, how can LTCI be structured as a short-term business? Isn't LTCI long-term by definition?

Thanks,
Regards,
Phani
 
Hi Phani

The 'long-term' in LTCI refers to care being required in the long-term, rather than saying anything about the type of insurance business.

It would be possible to design a product which was annually reviewable, although no product like that exists currently in the UK. There are examples from other countries (eg USA) of short-term benefits on care products, for example just paying for the first 1-2 years of care.

Hope this helps.
Sarah
 
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