Old-age might seem a long way off, but if you care about your children you should buy long-term care insurance now. Unless the insurers are going to go out of business, in which case you shouldn't. Fortunately for us younger folks, the aging Baby Boomers will probably be forced to solve this problem in some manner before we're old. Of course, the cost of that solution will probably be paid by... us younger folks.

Enter the idea of long-term care insurance. Buy a policy when you're still relatively young and healthy, pay the premiums every year, and if you do end up needing intensive support services, you can go to a nursing home secure in the knowledge that your spouse and your legacy are protected. Personal-finance columnists have been solemnly recommending long-term care insurance for years, though in my experience, this advice is often just as solemnly ignored.

That's because the policies are now quite pricey. When long-term care policies were introduced a few decades ago, they seemed like an attractive deal. As it turns out, that's because they were underpricing the insurance. Insurers expected a significant portion of people to drop the insurance every year (meaning that their previously paid premiums would be all profit). Instead, only about 1 percent did. They also underestimated costs.

And while typical health insurers don't have to worry much about interest rates, because they generally pay this year's health care costs out of this year's premiums, long-term care insurers need to park the money between taking the premium in and paying the benefits out. The ultra-low interest rates of the last decade have made those investments less profitable, hurting them still further. And state regulators have proved resistant to efforts to raise premiums to make the insurance more actuarially sound.

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