Long Term Care Insurance. A Finnish Perspective

Finland does not yet have Long Term Care Insurance. Public health services have so far been able to take care of the elderly, although public tariffing has left some people in a very difficult financial situation. The population is ageing, and with it the old age expenses are growing. The population is also getting lonelier with more single or childless people than ever before. Thus there will be a shortage of family caretakers in the future. Public opinion seems to be readier for private Long Term Care Insurance than before. The Minister of Health and Social Affairs has set a committee to further study Long Term Care Insurance and the possibilities for related tax benefits. On the other hand, Long Term Care Insurance is a problematic insurance from an actuarial point of view, so also the insurance companies have to consider the form and type of insurance they will be ready to launch. This survey is an abridged English version from a Finnish study on the need for, possibilities and difficulties of long term care insurance in Finland and on some of the European solutions already existing.

KEYWORDS: Ageing Population, Expenses, LTCI, Long Term Care Insurance, ADL, Activity of Daily Living, Finland, Europe.