A major demographic shift is happening. The ages 85+ population is projected to triple between 2015 and 2050. In comparison, the population younger than age 65 will increase by only 12 percent.
The cost of long-term care (LTC) is tremendous: nearly $84,000 annually for a nursing home and typically more than $30,000 a year for home care. Among people turning 65, more than two-thirds will eventually need LTC - services that are not covered by Medicare or private health insurance. Given this risk, you might expect sales of private long-term care insurance (LTCI) to be strong. But they're not.
The Takeaway: Cain Wants Chilean-Style Private Pensions in U.S.; Long-Term Care Insurance Program DOA
Republican presidential candidate Herman Cain is touting an alternative to Social Security based on a private pensions model instituted in Chile a generation ago; HHS ditches plan for long-term care insurance.
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