1) Long-term care insurance will be needed by an increasing number of Americans
ID: 2624215 • Letter: 1
Question
1) Long-term care insurance will be needed by an increasing number of Americans in the next few decades. But why isn't it popular now? Are there any problems with the current U.S. system to deliver long-term care? What are they? What is the purpose of long-term care insurance?
2) What will an insurer do if it learns that an applicant misstated his or her age on a life insurance application? Buster Brow knowingly tells the insurer his age is 28 when he is actually 38. What effect will this lie have on his insurance contract? What action should the insurer if the misstatement is found out after Buster dies?
Explanation / Answer
Right now America has a pretty decent welfare policy. So mot people are just fine with the government policies in place. How ever even today, a majority of employed people have some form or the other policy to take care of their needs. Also right now a good portion of the population is relatively. In a few years from now the demographics will have changed. Since private sector forms a part of our welfare system the there will be great burden on it to provide affordable policies.
If a person lies on his application about his age then the insurer has every right to terminate any contract between them. The insurere may also initiate legal proceedings. The premium that we pay on insurance contracts are in part decided by our health which is affected by our age. A young personis more likely to be healthy than someone older. I fthe firm finds out after the death of the underreporting of age they can deny any insurance.
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