That's why Davis and his wife recently purchased long-term care insurance for themselves. Two of every five Americans age 65 and older today will likely enter a nursing home, with more than 20 percent of those admitted staying more than five years. Two of every five Americans age 65 and older today will likely enter a nursing home. About 8 percent of the elderly population now has private long-term care coverage to pay for that assistance, according to the Urban Institute think tank, with insurance firms stepping up advertising and other efforts to sell more policies to consumers. Sales of the policies have increased 50 percent in just four years.
Insurers routinely turn down people with some serious health conditions.
And the insurance is costly. The issue is grabbing headlines. Congress is considering legislation backed by both insurance and consumer lobby groups that would allow consumers a tax deduction for the entire cost of a long-term care insurance plan. Obviously, the younger and healthier they are, they're easier to underwrite and will pay less premium. In early May, the House of Representatives passed legislation that would give federal government and military employees and retirees the ability to buy long-term care insurance policies at discounted rates.