Long Term Care Combo Product – Modeling, Assumptions, and Risks

This paper authored by the Life Experience & Assumptions Committee provides a practical actuarial overview of combination insurance products that pair life insurance or annuities with long-term care (LTC) benefits. It examines the growing market for these products, their underwriting and modeling approaches, and the key assumptions used for mortality, morbidity, persistency, expenses, and utilization. It also explains the product, reputational, and regulatory risks involved, including reserve requirements and the evolving principle-based reserving framework.