Product Design and Pricing of Long-term Care Insurance under Social Security Mode

The rapid advance of aging makes the demand for long-term care insurance grow rapidly. But Chinese current pure commercial long-term care insurance products have many shortcomings and depart from the needs of consumers seriously. Therefore, the long-term care insurance products under the social security model need to be developed immediately. On the basis of comparing the advantages and disadvantages of long-term care insurance products of commercial and social security, this paper takes Shanghai as an example, tries to design social security type of long-term care insurance products from the application of objects, rating assessment, insurance payments, fund raising, scope of protection and other aspects, and uses the starting annuity method and actuarial balance principle, calculates the payment rates and annual premium corresponding to different payment premium ages. The paper finally gives the conclusions and recommendations.