Longlife insurance: a prototype for funding long-term care.

Longlife insurance combines nursing home, home health, and deferred annuity benefits. It costs less than life care, allows the elderly to remain in their own homes, and protects assets. Adverse selection is limited because the plan is attractive to both frail and healthy elders. An analysis of 18,600 respondents in the Social Security Administration's New Beneficiary Survey indicates that 67 percent of all retirees could afford a typical longlife insurance plan. However, less than one-half of all females living alone, 24 percent of minorities, and 8 percent of the disabled could pay privately.