“People Still Need a Way to Pay for Long-Term Care: Idea File,” by Allison Bell, ThinkAdvisor

“Vince Bodnar, the chair of the Long Term Care Think Tank at the Society of Actuaries, has this idea: Someone ought to figure out more ways insurers can help people protect themselves against long-term care (LTC) risk. … Bodnar said in an interview that the SOA Long Term Care Think Tank has helped to develop two LTC finance concepts that appear to have broad appeal. One is the ‘life stage’ concept. A life stage product would term life coverage when an insured was young, then provide long-term care coverage when the insured was older. The second is the 401(k) LTC benefits concept. Advocates of this proposal would let workers use some of the assets in a 401(k) plan, or a similar plan, to pay for LTC coverage. Here are seven things to know about the concepts.”

LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):

These creative ideas from Bodnar and the SOA Think Tank are getting a lot of traction, especially in Minnesota. LTCI needs fresh thinking and it has been forthcoming. “Imagine the Possibilities” is this year’s well-chosen ILTCI conference theme.