It is a reliable business model because people do not know whether they will be the ones who need to draw more money out of the insurance pool. This leads them to hedge their bets and purchase insurance.
Inexpensive genetic tests are now available that will give people a better idea whether they are likely to develop Alzheimer’s and Parkinson’s diseases. Both diseases are likely to lead to the need for long-term care.
People who know they have a greater risk of contracting the diseases, would be more likely to buy long-term care insurance than others.
Insurers can now ask people about their risks for the diseases. However, people are not under any obligation to tell insurers the truth and the results of the tests are not available for insurers.
