New York Child Abuse Identification and Reporting Practice Exam

Which is the major reason why long-term care insurance is becoming increasingly important?

1. As healthcare costs decrease, demand increases.

2. As life expectancy increases, the chances of needing long-term care also increase.

3. As family structures become smaller, care options decline.

4. As retirement age decreases, needs for care change.

The correct answer is: As life expectancy increases, the chances of needing long-term care also increase.

Long-term care insurance is becoming increasingly important primarily due to the increase in life expectancy. As people are living longer, they face a higher likelihood of needing extended care services for conditions that may arise as they age, such as chronic illnesses or disabilities. This need for long-term support can put significant financial strain on families and individuals, making it crucial for them to consider insurance options that can help cover these potential expenses. The growing elderly population and the associated demand for long-term care services highlight the necessity for financial planning in this area. With advances in healthcare leading to longer lives, individuals must prepare for the possibility of requiring assistance with daily activities or skilled nursing care. Thus, the increased life expectancy directly correlates with the rising importance of long-term care insurance.