Taiwan is currently drafting a long-term care insurance (LTCI) program modeled after the German LTCI. Yet few studies in Chinese have thoroughly analyzed the German LTCI's far-reaching consequences. This research project sets out to explore the full impact of the German LTCI by conducting a systematic and critical literature review both in Chinese and English from 1995 to 2013. The findings are first, that the German LTCI has indeed accomplished its goal by alleviating the LTC-incurred financial burden on local governments. Second, the German LTCI has seen more precarious employment, leading to worsened working conditions and difficulties in care worker recruitment and retention. Third, its cash allowance has created a negative employment incentive for female family caregivers. Fourth, through LTCI, German society has become stratified more deeply along the lines of gender, class, and ethnicity. Last, most literature in Chinese fails to discuss the broader implications of the German LTCI.