The long-term care insurance is normally considered as the in-home health help or skilled nursing care which can be offered in a given facility. Many theorists consider this process as the coordination and monitoring of health care. It is believed that long-term care encompasses a wide range of assistance that gives individuals a prolonged period of time.
The long-term care insurance addresses adult daycare, respite care, assisted living, home care and home nursing. It is also important to note that age cannot be taken as the main factor in the long-term health care. Various theorists argue that people obtain long-term care insurance because it is not covered in other services like Medicare, Medicaid or health insurance (Robinson, 2002).
There are several reasons why long-term insurance is not purchased. The first reason is that it cannot keep pace with the inflation. It is clear that the hedging inflation has a cost and a short-term care plan has better benefit because insurance takers can roll back over the principal. This assists in keeping up with inflation.
Therefore, it is clear that inflation tends to affect long-term care insurance than the short-term care insurance. It is important to note that the services and products of long-term care insurance will be much expensive than today majorly due to the inflation. Finally, experts argue that the cost of long-term care insurance will increase by five percent annually due to inflation (Weiss Ratings Inc., 2002).
The second reason why long-term care insurance is not being purchased is because it is expensive. It is important to note that the cost of long-term care can be very high. It is normally very costly to pay for this kind of care through salaries or savings. But, experts argue that it is easier to pay for this program through retirement systems. The last reason is that the benefits can be taxed and this means that the care is reduced and cannot gather completely for the services required when the time of need approaches (Newhouse, 2002).
The Community Living Assistance Services and Support (CLASS) Act
The Community Living Assistance Services and Support (CLASS) Act is considered to be the public, charitable insurance service that help in promotion of community welfare. The main purpose of this program is to assist individuals with functional restrictions mainly to obtain non-medical services and support in order for them to live comfortably in the society (ACLI, 2001). The program offers: transportation, assistive technologies, personal assistance services and housing modification.
It is clear that the services discussed above cannot be provided by long-term care, health insurance, Medicaid services or Medicare services. It is important to note that employed individuals will be included in this program unless they choose not to. This program is meant to work together with other services that are meant to be long-term.
Effects of the new heath care reforms
It is clear that almost all the U.S citizens will be affected either directly or indirectly with the implementation of the Patient Protection and Affordable Care Act. The program requires most individuals to purchase health insurance and the new program will include low income earners. It is also important to note that the lifetime limit coverage is banned.
References
American Council of Life Insurers (ACLI). (2001). Life Insurers Fact Book. Washington, DC.
Newhouse, J. (2002). Pricing the Priceless: A Health Care Conundrum. MIT Press: Cambridge, MA.
Robinson, J. (2002). “A Long-Term Care Status Transition Model.” Mimeo, University of Wisconsin: Madison.
Weiss Ratings Inc. (2002). “Weiss Ratings’ Consumer Guide to Long-Term Care Insurance.” Palm Beach Gardens: Fl.
National Association of Pediatric Nurse Practitioners. (2015). Mission statement on malpractice insurance for nurse practitioners. Journal of Pediatrics Health Care, 29, A11-A12. Web.
Article Summary
The selected article begins by appreciating the fact that advanced practice nurses (APNs) should have access “to medical professional liability insurance” (National Association of Pediatric Nurse Practitioners, 2015, p. A11). Since APNs are gaining responsibility and practice autonomy in a wide range of settings, they should be ready to protect their customers while at the same time focusing on every existing law, regulation, and statute. The article goes further to acknowledge that the number of claims arising from nursing malpractices have been on the rise. The author indicates that malpractice insurance is critical since it protects individuals in need of services and healthcare providers. Most of the insurance plans provided by different employers might not be adequate or capable of protecting different nurse practitioners (NPs).
With this kind of understanding, NPs should examine the nature of employer-associated coverage in an attempt to make informed decisions. They must also be aware of the major malpractice concerns and risks that can emerge in their respective working environments or settings. Additionally, every patient has a right to receive evidence-based, quality, and sustainable care. This means that patients who do not receive quality care from NPs are empowered to file legal claims (National Association of Pediatric Nurse Practitioners, 2015). This scenario explains why there is need for both patients and NPs to have adequate protection. That being the case, NPs should have reliable malpractice insurance coverage.
The article outlines a number of key issues that should be taken seriously by APNs. To begin with, they should have access to affordable insurance for any form of malpractice. Employers should be ready to offer appropriate insurance coverage to practitioners. NPs must acquaint themselves with the Nursing Practice Acts in their respective states. They should also embrace the power of continuous education to protect themselves from various risks that can disorient their career goals (National Association of Pediatric Nurse Practitioners, 2015). Every NP program should be redesigned in such a way that it focuses on issues such as insurance coverage for malpractice, liability, risk assessment, and mitigation.
The author goes further to indicate that NPs should be willing to analyze the role of license insurance coverage. This is the case because the idea will empower and guide them to have the most appropriate policy against any form of malpractice. Studies should also be undertaken to analyze the nature of different malpractices and liabilities associated with them. The collected information can them be published to educate and improve the knowledge of many practitioners (National Association of Pediatric Nurse Practitioners, 2015). New laws and policies can also ensure that more practitioners have access to affordable insurance policy. When all caregivers and health professionals have adequate insurance coverage, it will be easier for them to pursue their goals, address the needs of their patients, and transform the country’s medical sector.
Concluding Remarks
The above summary has indicated that professional liability is one of the major concerns affecting the performance and efficiency of many nurse practitioners in the United States and across the globe. This problem affects all NPs irrespective of their competencies, experiences, positions, and specialties. This article, therefore, reminds NPs to have appropriate malpractice insurance coverage and implement evidence-based risk mitigation strategies. They should also engage in continuous learning to protect themselves from lawsuits and claims that can jeopardize their career goals. The practice will eventually transform the country’s healthcare sector.
Reference
National Association of Pediatric Nurse Practitioners. (2015). Mission statement on malpractice insurance for nurse practitioners. Journal of Pediatrics Health Care, 29, A11-A12. Web.
Long-term care insurance is different than a usual insurance policy; it is something that is not covered by usual medical insurance or any other health care program. This kind of insurance provides care for a longer time than a predetermined period. This is normally provided for people who are not exactly ill but fail to carry out routine tasks such as getting out of the best, walking to the bathroom, traveling to work, dressing, bathing, etc.
These elderly people who require long term care insurance are usually the ones who do not have any relatives and are completely alone in this world; some are those who do not want to rely on their children or relatives and like being independent; some are also those whose children do not care and disown their parents once they grow up (AARP.org).
With the life span of people increasing, the issue of health risks is also rising. Long term care insurance generally covers daily home care with dressing, eating and basic tasks; adult day care; living facilities which is provided in a natural residential setting with meals, health monitoring and routine task help; nurse health care who visit the individual at home; and lastly, a nursing care home. What kind of service one receives depends on the kind of package he or she subscribes to (Mathews, 2008)?
There are a large number of companies providing this service: MetLife, John Hancock, GE Capital, Insure America Health, Elder Care, and LifeCare Assurance Company. Each of them has its own rates and packages; they even have combos and deals. However, I would personally make my purchase from MetLife. The reason is the credibility of the brand; it is one of my most well-known service providers and its customers have generally been happy with them. Also, the prices that they offer their services at are almost the same as the ones issued by the price index as part of the senior citizen information and news in 2008: which is, $1,342 per annum if married, and $1,999 if single. Additionally, they have a good website and online registration system which is technically a great help for someone who has difficulties moving around (Consumer Reports, 2003).
There are certain things that one should keep in mind while purchasing long term care insurance: one should make a full background check and review their financial reports and analysis because one would not want to be stuck with a care company that has no money; ensure that the company has been in business for long and has a long way to go because this is a long term commitment if the company goes bankrupt or shuts down, one remains insecure; and of course, the provider should be able to provide outstanding service that is also differentiated. If one tries to fit MetLife into the criteria of the ideal selection of a long-term insurance provider stated above, it fulfills all the clauses; thus, my personal selection will also remain MetLife.
Works Cited
Matthews, J., Long-Term Care: How to Plan and Pay for It; Edition: 7, illustrated, revised; Published by Nolo, 2008
“Do you need long-term-care insurance?” Consumer Reports; 2003.
McKinnon J.; The black population; Census 2000 brief; Washington, DC: US Department of Commerce; US Census Bureau; Web.
AARP.org.
Long-Term Care Insurance Cost Nears $2,000 a Year for a Senior Citizen; Senior Journal.com.
“Long-term care is assistance with any activities of daily living, which can include bathing, dressing, transferring, eating and continence. Long-term care can also include short-term rehabilitation” (All About Long Term Care, “What is Long Term Care?”).
Need: LTCI policy is meant for people who can afford continuity in payment of premium without that posing a burden on their finances and draining their retirement savings. Individuals needing long-term care usually fall in the 85+ age band. Experts suggest a minimum cover of three years for men and six years for women (Wolosky, p. 34).
Eligibility: The benefits are triggered in case of severe cognitive impairment or inability to perform two or more “activities of daily living”.
Coverage: LTCI covers skilled care in nursing, housekeeping at home, any medical care that is approved but not written in the policy. It is now available without age limit, offers unlimited benefits and covers Alzheimer’s as well. The maximum duration of the benefit pay-out is usually 3 to 5 years. The pay-out is made till the insured’s maximum lifetime benefit or till the pool of funds is completely used.
Employer’s role: The change in federal policy has shifted responsibility to individuals and their families for their healthcare. Employers now offer group LTC at discounted rates. From 2000 to now, there is a 17% growth rate in employer participation in Group LTC (Hirschman 65). If LTC is purchased under a group plan, it still remains portable since the policy is owned by the employee.
Ensuring benefit and avoiding fraud: LTCI policy like any other insurance policy should be carefully read and understood. Agents selling these policies are eager for high commission and often in their greed, tend to explain policy features in an incomplete way which can render the policy meaningless when a claim actually arises. Agents often use scare tactics especially with seniors who are lured to buy LTC Insurance. For example, as explained by Alexander, LTC policies can have severe disability criteria or not provide for inflation and turn useless at the time of claim. Similarly, even if a facility is licensed to provide care but it is not explicitly stated in the policy, one cannot claim coverage.
Purchase of long-term care by younger aged individuals: Owing to the expense associated with long-term care and fear that it may cut into retirement savings long term care policies are gaining popularity. Interest in LTCI is compounded by the fact that Medicare or other health insurance products do not provide this benefit. Besides the desire to be independent is another driving force that pushes younger aged individuals to buy LTCI. Experts recommend the purchase of LTC Insurance at age 50yrs or below to supplement disability insurance (Wolosky, p. 34). According to the Employee Benefits Research Institute “the 17- 44 age group has experienced a 400% rise in severe disabilities over the past 25 years” (qtd. in Gordon, p. 42). One-third of long-term care cases are below 60 yrs. A look at the escalation in premium suggests that purchase of LTC while a person is younger and can afford continuity in premium payments is prudent (All About Long Term Care, “How Much Does Long Term Insurance Care Cost?”).
Age
Annual Premium ($)
Premium paid until age 90 ($)
50
914
36,560
70
2287
45,740
80
5732
57,320
Younger individuals are showing an increased interest in the purchase of LTCI. It makes sense for high-income young individuals to buy such a policy since it works out cheaper if purchased at a younger age.
Besides such individuals who are in the high-income age band can buy LTCI for their dependent parents who may be not be living with them. In case of unforeseen circumstances, such individuals would have created a safety net- not only by way of protecting their retirement savings but also by maintaining job stability by not having to take on the role of caregiver.
References
Alexander, Richard. The Consumer Law Page, Avoiding Fraud When Buying Long-Term Care Insurance: A Guide For Consumers And Their Families.2007.
As a future practicing nurse, I will need to purchase malpractice insurance, and I have several concerns and questions about it. First of all, it is hard to estimate the exact amount of insurance that I may require since the amounts of money paid to different patients may vary widely (Buppert, 2008). Therefore, the question “How much malpractice insurance is enough?” remains open. Moreover, by acquiring a more significant number of responsibilities, nurse practitioners will have to pay higher premiums, which is also a concern (Gardenier et al., 2016). Furthermore, I need to consider when thinking about malpractice insurance whether it is mandatory in my state. Some healthcare employers provide malpractice insurance for their workers (Heuer et al., 2019). Therefore, I should clarify whether I need to have insurance if the hospital where I work already has it.
When purchasing insurance, I will need to ask the company whether its rates have remained stable over the years. Furthermore, I should be aware of whether my premium will increase if I receive a claim from a patient. Most importantly, I need to know what services exactly are covered under the insurance policy and what is not. Some policies cover prior acts, but some may not. It is also essential to know whether the company provides advice for a claim. I may require someone to consult with in case of an emergency, so I should have the contact numbers of insurance agents. Knowing whether I can choose my lawyers in case of a lawsuit is also crucial. The process of reporting a claim must be clearly stated in the insurance policy. Finally, I should be aware of how quickly I can receive coverage for a lawsuit from the company.
References
Buppert, C. (2008). Frequently asked questions and answers about malpractice insurance. Dermatology Nursing, 20(5), 405-406. Web.
Gardenier, D., Thomas, S. L., & O’Rourke, N. C. (2016). Will full practice authority mean higher malpractice premiums for nurse practitioners? Point/Counterpoint, 12(2), 78-79. Web.
Heuer, B., Cavender, J. D., Lofgren, M., & Dihigo, S. (2019). NAPNAP position statement on malpractice insurance for nurse practitioners. Journal of Pediatric Health Care, 33(4), A11-A13. Web.
First, one should briefly summarize the critical area of UHC’s professional activities discussed in this report. This company provides American citizens with counseling and health insurance plans, including Medicare and Medicaid (About us, n.d.). UHC positions itself as a socially responsible organization because its range of professional activities includes supporting vulnerable groups and providing high-quality health care services with increased accessibility. However, clinics often have problems, called HACs, that result in additional damage to a patient’s health at the fault of the hospital. UHC does not cover this plan because its corporate policies are designed to meet the legislative standards of DRA 2005, IPPS FY 2009, and Section 3025 of the PPACA (HRRP, 2020; Hospital-acquired conditions, 2020; HHC, 2013). These acts impose severe limitations on reimbursement to clinics for HACs and HAIs. To put it another way, insurance companies (including UHC) should not cover reasonably preventable acts of harm to a patient’s health because the blame in these scenarios is imposed on physician error and negligence (UHC, 2021). However, UHC also uses other methods to influence clinics, such as through fines on reimbursable patient charges if clinical entities have HAIs greater than a set threshold (Richardson, 2015). To put it another way, if a hospital has many cases of HACs/HAIs, UHC imposes a 1% penalty. However, the data handled is entirely confidential, and it is ruled out that UHC will release the names of those patients who have been subjected to medical errors. This personal security rule is postulated by HIPAA, which also governs UHC. As a generalization, it is pertinent to note that UHC satisfies the regulatory requirement well and creates a culture in which clinics find themselves interested in providing the best care for patients. On the other hand, the insurance organization shows a high level of social responsibility, which means it truly values its clients.
At the same time, it should be understood that health policy is not conservative but strives to follow the current agenda precisely. Therefore, it is very likely to expect that the listed regulatory requirements will modify depending on the development of the risk management problem. On the one hand, if the number of HACs continues to trend upward, this will lead to the establishment of larger sizes and impose more stringent requirements on the operation of clinical organizations. On the other hand, if the number of HACs declines because of constructive policies, we should expect a relaxation of conditions. Finally, in-depth medical research may lead to a broadening/shrinking of the range of HACs for which insurance coverage is actual.
Strategies to Influence, Impact & Monitor Changes
For UHC, there seems to be an apparent interest in reducing the number of HACs. For this reason, the company can use several metrics that will most fully and comprehensively reflect the situation in the healthcare system as a whole, as well as in individual clinics. First and foremost, it is the total number of HACs/HAIs for individual clinics and by region: this statistic will not only help determine how effectively healthcare professionals are coping with their professional tasks but also clarify the average agenda in the region. Information by region can be valuable in determining the need for cultural re-education. On the other hand, information on the proportion of patients (in the hospital) who fall ill because of HACs can help determine how often medical error occurs in a hospital in patient flow. It is also helpful to estimate the amount of money that is reimbursed to a patient if HAC has been included in the 14 exclusion lists (UHC, 2021). This cross-sectional information will provide insight into how often a hospital is found to be innocent of HACs. Finally, a systematic assessment of client satisfaction with the resolution of the problem and their awareness of their rights in relation to hospital financial responsibility is critical for the purposes of cultural re-education.
However, it should be understood that implementing organizational change as part of strategic improvement always involves risks. The collection of statistics and information must be accompanied by transparency because the punitive relationship between the clinic and UHC implies excellent accountability. At the same time, clinical companies must agree to disclose this data to UHC and ensure its complete confidentiality under HIPAA. Finally, this requires upgrading the patient interaction system to ensure that client evaluations are collected smoothly and handled correctly.
Value Proposition for Change Management
As a summary of the previous two sections, it seems considerably clear that UHC needs organizational change that will optimize the current agenda and, on average, improve the medical culture. Such a value proposition is the implementation of training programs for the company’s clinical staff and clients. This solution will qualitatively increase the average awareness of patients not only about the probability of HACs but also about the rules of action in case of such an extraordinary situation (Patel et al., 2015). For company employees, the training should be implemented in order to increase their competence and remind them of the penalties imposed by the UHC if the clinic commits many medical errors (Van et al., 2018). This solution is strategically correct, although its implementation cannot but be accompanied by problems and risks.
For example, it is essential to get the full involvement of stakeholders; otherwise, the resources invested in training programs may not bring benefits. In addition, it is generally uncharacteristic for insurance companies to engage in training, therefore, an additional step would be to conduct marketing campaigns to entice more clients and employees. Finally, health care workers may not see the value in taking classes from UHC, which in some ways could be seen as the enemy. Therefore, the leadership of the two companies may enter into strategic partnerships in which, if the training is successful, the clinical companies can reduce fines.
While recognizing concern for social well-being as one of UHC’s top priorities, it is critical to separately emphasize the critical ethical and legal challenges that a change implementation program may face. UHC’s ultimate goal, as encapsulated in its mission statement, directly affects, or to be more precise, in some ways conflicts with, the interests of clinicians (Appold, 2013). Few companies are genuinely interested in third-party intervention, and in the case of UHC, the implementation of such practices may seem excessive. In this sense, it is critical for the insurance company to be fully transparent about its intentions, namely to improve the health care agenda by reducing errors (Code of ethics, 2020). The UHC acts as a judge, as it has the power to impose fines on clinics, but in a strategic engagement, this role must be replaced by a trusted partner and companion in achieving a common goal.
References
About us. (n.d.). UHC. Web.
Appold, K. (2013). Medicare penalties make hospital-acquired-infection solutions a priority. The Hospitalist, 1(9), 1-3.
Code of ethics. (2020). ASCE. Web.
HHC. (2013). Summary of the HIPAA privacy rule. HHS. Web.
Van de Geer, J., Veeger, N., Groot, M., Zock, H., Leget, C., Prins, J., & Vissers, K. (2018).
Multidisciplinary training on spiritual care for patients in palliative care trajectories improves the attitudes and competencies of hospital medical staff: Results of a quasi-experimental study. American Journal of Hospice and Palliative Medicine, 35(2), 218-228.
The main difference in health insurance coverage in New Zealand is that diseases unrelated to an occupational injury are not covered by insurance. On the official website of Accident Compensation Corporation, there is a list of cases in which insurance is not covered. Among them are long-term illnesses, emotional problems, stress, and conditions associated with aging. At the same time, even to cover work-related injuries, a person will have to try to turn the situation around and take control. An accident at work is an event resulting from which the insured has received an injury or other damage to health while performing duties under an employment contract. This applies both to the employer’s territory and outside it, either during the journey to the place of work or returning from the place of work. For example, if the victim was traveling on a transport provided by the employer, which entailed transferring the insured to another job, temporary or permanent loss of professional ability to work, or death.
At the same time, the trial of whether a person has received a work-related injury can be very long and resource-consuming. If to turn to the Woodman report, one can see that the problem has existed for a long time and causes massive inconvenience to the victims. Woodman supports creating a new system with mandatory insurance coverage while reducing the differentiation between these cases and legal costs. Returning to the topic of differentiation between the range of injuries resulting from an incident and damages resulting from an illness, the main difference also remains the different sizes of insurance. Woodman, in his document, gives an example of a situation when a person who has received a disability as a result of an injury receives much more payments than a person with a congenital disability.
The issue of differences between workplace accidents and workplace illnesses in New Zealand is relevant for the same reason for the difference in benefits. Accidents occur as a result of working with harmful, hazardous substances and overloading. The security policy is regulated by law; therefore, getting paid under this article is considered a more complicated and time-consuming process. The employer must provide the worker with all the necessary equipment to ensure labor safety. If this does not happen, the responsibility for the occupational injury lies with the business owner. Furthermore, based on legislative aspects, the employee must take measures to eliminate the danger on their own and not risk health and life. This type of illness is more predictable than accidents in the workplace. It includes injuries associated with physical overload, hypertension, coronary artery disease, hearing, and lung function disorders. In other words, there are several diseases inherent in workers in some hazardous regions. Work-related injuries have two dimensions that differ significantly in terms of regulation and compensation policies.
Such injustice dramatically affects not only the financial but also the moral state of the discriminated party. General insurance policy brings moral suffering due to disability experienced by people of both groups is similar in many ways. However, some receive more help from the state and the rhinestone companies than others. This contradicts the principle of equality of all citizens of the state, as well as generally undermines the liberal authority of the government. By the policy of separation and by allocating more funds to support one group of people with disabilities, insurance companies cynically force people to fight and prove the severity of the light of the injury. In addition, many people who have been injured may be especially morally depressed and experience additional discomfort due to lengthy court proceedings on this issue. People with disabilities should not feel divided and graduated when it comes to insurance payments. There is also inequality in the area of workplace injuries since one section is much more heavily covered by insurance. Injustice in the protection system can be seen in many aspects of residents and must be discussed.
To stabilize the situation and ensure equal opportunities for all, it is necessary to revise the insurance conditions at the state level. First of all, it is essential to collect statistics and identify problem points that require revision. For example, people suffer from the too-long procedure for obtaining compensation, which could be simplified. A step towards society will allow them to understand that they are being cared for and inspire trust and respect. Moreover, it is necessary to establish complete control of organizations interacting with hazardous substances; this will reduce the number of insurance cases of occupational diseases. A few simple steps are enough to keep people safe and reduce injuries.
Rehabilitation is necessary for every person with a disability, which also means that equal insurance funds are needed. By drawing a line between disability due to an incident and congenital disability, insurance companies pay much more attention to the cause rather than the consequences that a person will now have to live with. Victims should not burden themselves with proving their problems and spend time on lengthy proceedings with insurance companies. It does not matter whether it is a long-term illness that proceeded gradually or an unsatisfactory case – the main priority of the insurance system should be equality in assisting.
General liability policies do not ensure protection for the professional against arising negligence, misinterpretation, and malpractice. Professional liability insurance (PLI) is the coverage for nurses, lawyers, or other workers that protects them from their clients’ claims and complaints (Westrick, 2014). Medical malpractice falls under this type of insurance to prevent nurses, physicians, and other medical staff from the alleged prosecution. Therefore, a hospital worker must be aware of the PLI.
Four nurses have been interviewed for this assignment. Three of the interviewed nurses reported having individual liability insurance; the other nurse was satisfied with the healthcare organization’s insurance. The majority claimed that individual kind of policy is beneficial because a complaint may arise from a colleague or a hospital. Moreover, it is an ability to practice and receive benefits as a nurse. These points were identified as the most popular for obtaining the individual plan; however, there is also one reason against unpredictable premium cost determinants (Clarke, 2017). The grounds were valid and fully corresponded to the nurses’ guesses.
All nurses interviewed were professionally insured and considered the coverage as an opportunity to protect themselves. However, they did not know several options the insurance provided. For instance, they were unaware that such a plan covers the violation of confidentiality or slander (Clarke, 2017). Furthermore, it ensures that a nurse may rest, knowing they do not have to pay compensation. As a result of the discussion, nurses received new information about the professional liability policy; one of the nurses decided to obtain the individual plan.
In conclusion, what I found out is that the PLI serves as a reliable protection for a nurse against slander, claims from patients, colleagues, or hospitals. Besides, I learned that it covers all the expenses, prevents the alleged suitcase, and allows workers to be confident about their actions. Therefore, each nurse has to obtain it to create a safe working environment and stay secure.
References
Clarke, M. (2017). The law of liability insurance. Routledge.
Westrick, S. J. (2014). Essentials of nursing law and ethics (2nd ed.). Jones and Bartlett Learning.
There is no doubt that advertising is one of the most powerful driving forces behind the growth of the 21st century’s global economy given that, most international media and internet firms are dependent on it for their revenues. Consequently, advertisers are under a lot of pressure to ensure they exert as much influence as possible on their target audiences. Media advertisements, more so digital ones, are primarily designed to convince audiences to develop a positive attitude towards a given product, concept, or even individual. The insurance advertisement analyzed in this paper is a classic example of creatively blending the factors mentioned above to bring about what many people have described as an overly emotional and compelling advert. While its informational value is practically non-existent, the advert is, however, remarkably successful in appealing to the pathos of a universal audience. It achieves this by establishing an intense emotional connection between the positive emotions it evokes and the insurance company sponsoring it.
Synopsis
In summary, the advert shows a young man who goes through his day doing random acts of charity and selflessness for people that the narrator makes clear can never afford to repay him. He consistently gives money to a beggar and her child, hangs bananas on his elderly neighbor’s doorknob, and even cares for a stray dog and abandoned plant. The conclusion of the advert is that all he gets in return are emotions and the satisfaction of knowing he brings happiness to people (Chrystina). The insurance company then indicates that just like him, they are only interested in doing “good” for their clients.
Context
The advert is contextualized in the backdrop of Thailand, a country where life insurance has been experiencing a boom, with market analysis showing it to be on a consistent growth trajectory (Norchoovech and Leekitwattana). The target market for insurance companies is mostly the young emerging urbanized middle class, although many advertisers tend to focus on the entire audience spectrum. The protagonist is evidently part of this emerging working class, while those he shows kindness are primarily from the lower end of the poverty bracket. Although the ending appears to be an anticlimax, from a critical reading of the context and actions, there is a moral lesson about the selflessness of buying insurance for one’s family with the knowledge they can never live to enjoy it (Be repaid). That is the same “good” contextualized in the young man’s actions, but this theme is so deeply hidden, it is mostly lost in the shadow of euphoric emotion generated by the overt acts of altruism.
Visual effects
The advert has used several visual elements to create different impressions, with the most notable ones being color and light effects. Most parts of the advert are shot in “daylight” and made to appear as if the events are recorded under natural light. However, the lighting has been enhanced such that, even in the outdoor scenes, the actors almost never cast shadows. Consequently, in the darker scenes portraying night, there is a sharp contrast, although the location is only slightly dimmer and softer. In the harsh and bright daylight, the antagonist is depicted doing acts of charity, and at night, the light is softened. As a result, when the narrator is asking the viewer to introspect about his life, the scene has been set using dim, soft lighting that viewers are likely to associate with meditation or deep thought. Color is relatively neutral in most of the film, but in the end, the insurance firm’s name, printed on a blue background, blots out everything else. The centrality of the word, as well as the uniformity of the blue background, forces the viewer to notice it and probably remember it for a long time, given the jolt of transition.
Analysis
A critical examination of the advert reveals overt the use of pathos as it is targeting the universal sense of charity and human goodwill. Given the nature of life insurance adverts, it is unsurprising that they should focus on the pathos appeal. However, in most cases, the emotional appeals are negative, surreptitiously impressing upon audiences the reality of death and sudden illness and reminding them of the need to be prepared for these eventualities. However, this advert strikes a positive note by focusing on the “good” qualities of the company providing insurance rather than the necessity of the product. It generates powerful feelings of happiness, sorrow, inspiration, and love, which the company hopes can be transferred to viewers to bring about a positive attitude towards their product.
What does the advert want to want to achieve?
The overriding objective of many adverts is to generate positive emotions and then, by association, relate them to a specific product (Stewart, David, Jon and Aditi 122). In this sense, the advert can be used to promote practically anything since it capitalizes on the positive emotions by presenting the company’s name at the end, and the narrator implies that the company is also out to do good. Despite the vague nature of the relationship between the product and advert, it is nevertheless immensely successful. The success is embodied by the advert’s online popularity with over 5 million views on YouTube, as well as the fact that viewing the clip is an overly emotional experience. It primarily succeeds because the emotions it appeals to are universal, and as a result, most people watching the film empathize with the characters and can relate to them at some level. However, therein lies the risk of emotive adverts as customers may emotionally pick the company without exploring the alternatives in the market even if they are probably more cost-effective and better. Therefore, while conceding that the advert was remarkably successful, this may not be a good thing for prospective customers as they may end up buying products they do not need or understand well enough.
Whom does the advert target?
As mentioned above, the protagonist is most likely a member of the emerging middle class, and the advert, therefore, assumes that his peers in this category will relate to his actions and envision themselves doing or witnessing them. It sharply contrasts with most insurance adverts, which appeal to upper-middle-class tastes and ideals such as a secure home for one’s family and the comfort of living a stress-free life. On the contrary, the advert embraces the fundamental challenges of life and confronts realities that society would rather ignore. These include extreme poverty and starvation, lack of proper housing, clothes, and even physical human weakness. However, the advert does not target only those who suffer from such problems. By appealing to the fundamental human emotions, it manages to reach out and transcend social-cultural and economic barriers making it relevant to a universal audience.
Conclusion
It is worth noting that in the advert discussed in this paper, there is no information at all about the insurance firm’s product, but as aforementioned, its success is unequivocal. Therefore, one is compelled to ask if an advert by a competing firm demonstrating the advantages and cost of their premiums would appeal to customers more. Probably not; while the answer is not a validation of the superiority of emotional advertising, it is proof that in this particular case, it has been applied with exceptional success.
Works Cited
Chrystina, Ng. “Creative ads touching heartwarming thai life insurance commercial.” Online video clip. YouTube. YouTube. 2014. Web.
Norchoovech, Phuwin, and Leekitwattana, Anothai. “The Future of the Thai Life Insurance Market.” Bangkok Post 2014. Web.
Stewart, David W., Jon Morris, and Aditi Grover. “Emotions in advertising.” The Sage Handbook of Advertising. London, Thousand Oaks, New Delhi, Singapore: Sage (2007): 120-134. Print.
Coverage varies widely depending on the provider and the needs of the customer. In addition, different states have different home care and assisted living facilities and these vary the cost of the long-term care insurance.
These include home care, living assistance, and daycare for adults. The long term insurance packages also contain tax benefits such that the beneficiary does not need to pay tax on the payments received (Health and Human Services Paying For Long-Term Care, 2010).
Beneficiaries obtain financial coverage of long-term care. The long-term care insurance allows one to make use of their savings and life insurance for other purposes. Under the federal program members benefit from a group rate lower than individual payment rates. To qualify for long-term insurance, the purchaser should not have a preexisting medical condition.
Anyone above 18 years may purchase long term insurance. Limitation may come in because purchase of long-term insurance from non-qualified companies jeopardizes ones benefits. Secondly, monthly premiums are expensive (All About Long Term Care, 2010).
Medicare
Medicare is a form of insurance. It exists in three forms namely Medicare as hospital insurance, Medicare as medical insurance and Medicare as prescription drug coverage.
In addition, there are medical advantage plans provided by private companies. They encompass one or more of the other categories of Medicare. Medicare covers hospitalization bills, doctors’ fees and drug costs depending on the type of Medicare. Qualification for Medicare is only available to people above the age of 65. People with certain disabilities and falling below the age also qualify.
The beneficiary has to pay regularly for the program. Medicare limitation is that the financial compensation under Medicare may be insufficient to cover all long-term costs (Who pays for long-term Care?, 2010).
Medicaid
With Medicaid, the beneficiary receives long-term home care within their community or in a nursing home. With Medicaid, the beneficiary does not have to leave their home, instead they can ask for care provisions at home.
Members must be earning low incomes and have limited resources to access Medicaid. Limitations for Medicaid are that the beneficiary can only access the service form a licensed facility for Medicaid. Moreover, the facility must have a capacity for caring for the patient (Center for Medicare & Medicaid Services, 2010).
Continuing Care Retirement Community (CCRC)
Long-term costs are taken care by monthly fees and entry fees. In addition, there is a centralized care within communities for all beneficiaries.
Members get nursing services, healthcare services and social services. All members have access to assisted facilities and may live alone or in shared apartments. The requirements for CCRC include a provision that the beneficiary must be able to purchase the monthly payments for care.
There is also an entry fee that is payable at the beginning of the contract period. On payment of extra fees, beneficiaries also get care in assisted facilities. However, this provision only exists in some CCRC programs. Otherwise, one automatically benefits from a lifetime contract after paying normal fees (Health and Human Services Paying For Long-Term Care, 2010).
Limitations for CCRC are that continuing care has a high purchase price. The program also has an entry fee that might be non-refundable. Provisions vary with the type of CCRC with some having no provision for other long-term care costs. Thus, the beneficiary has to pay for extra care. The beneficiary has to relocate to an assisted facility or nursing home (Health and Human Services Paying For Long-Term Care, 2010).