Long Term Care Health Insurance

Long Term Care Insurance

Long Term Care Insurance companies also earn investment profits. These are generated by investing premiums received until they are needed to pay claims. This money is called the 'float'. The insurer may make profits or losses from the value change in the float as well as interest or dividend on the float. In the United States, the underwriting loss of property and casualty Long Term Care Insurance companies was $142.3 billion in the five years ending 2003. But overall profit for the same period was $68.4 billion, at the result of float. Some Long Term Care Insurance industry insiders, most notably Hank Greenberg, do not believe that it is forever possible to forever sustain a profit from float without an underwriting profit as well.