Long Term Care Insurance

According to statistics given by the United Nation, the ratio of the elderly population in China reached an all time high of 6.96% in 2000, which means that our nation is amongst the ageing societies. On the one hand, the ageing population will increase the number of un-wealthy elderly in this nation, on the other hand, with advancements in medical technology, the average age of our county men will increase continuously, and population demographic and illness chart are being changed. At the same time, the "one child policy" established in the 1970's is showing results with a decrease in the birth rate, resulting in smaller families. This results in the present "four two one", "four two two", even the "eight four two one" family structure as well as the "empty family." So the average middle age in China today—"the sandwich generation" who is stuck between caring for the child and the elderly as a key person or a common employee in their companies feel high pressures and tired. In addition, the remarkably increasing costs of the long term care (LTC) for the elderly and inefficiency in the elderly social medical insurance generate the need for the long term care insurance (LTCI).Through comparisons with popular international long-term care insurance in developed countries such as America and Japan, this article establishes the fact that a long term care insurance in China is essential. This article also introduces a three-step long term care insurance model that is created especially for the Chinese population. Step one: using commercial long term care insurance; step two: having the government, employers, and employees involved in a combination of social basic long term care insurance and supplementary commercial long term care insurance that strengthens one another; and step three: using compulsory social long term care insurance by government all over the China. For this purpose, eight methods must be carried out: establish the system of risk control in the LTCI market; enhance a good deal of propaganda about LTCI; increase public knowledge of LTCI in general; devote major efforts to developing the group LTCI; improve and perfect nursing facilities and increase the number of caregivers; give energetic support to care at home and care at community; improve the legal systems about LTC and LTCI; enhance specialist training and perfect LTCI policy.