Final answer:
It is generally false that long-term care insurance premiums are low for those over 60 because premiums are based on age-related risk, and older individuals have higher expected health care costs.
Step-by-step explanation:
The statement that policy premiums for long-term care insurance are relatively low, even for those over 60 years old, is generally false. Insurance premiums, including those for long-term care insurance, are typically set at actuarially fair levels. This means that premiums are based on the risk profile of the individual or group being insured. Since older individuals are at a higher risk of needing long-term care, their expected health care costs are higher, leading to higher premiums. Similarly, other higher-risk groups, such as people with chronic diseases or young male drivers, also face higher premiums for their respective insurance policies.
In consideration of the elderly as a powerful interest group, it's important to note that government programs like Medicare provide health insurance for those 65 and older, which can influence how the elderly engage with other forms of insurance. Nevertheless, private long-term care insurance would still be based on risk assessment and therefore might not be affordable for many in the over 60 age group.