The Development Of Long Term Care Insurance In China

China has been among the ageing society since 2000. On the one hand, the ageing population leads to fast growth of the old people; on the other hand, with further advancements in medical technology, the average life of our people will prolong continuously. At the same time, with the"one child policy"established in the 1970's, the family structure in China gradually becomes smaller. Then"four two one","four two two"family structure and"empty nest family"appear. In addition, long-term nursing expenses for the old-age continuously increase, social security system is still not perfect. In such circumstances, long term care insurance (LTCI), which is one of health insurance products, appears to provide the old people with long-term care and economic security.This paper sets out from the basic theories of long term care insurance. Using comparative methodology, the author compares the social backgrounds, the operating models, advantages and disadvantages of LTCI between America and Japan. Making use of quantitative and qualitative analysis, the author predicts the demand and supply of LTCI in China. According to the present situation of social and economic development in China, we draw lessons from America and Japan, setting up our LTCI model and putting forward some constructive suggestions for bettering this model.