Archive for March, 2015

Long Term Care Insurance Claims

March 22, 2015

From a recent webinar by Genworth Financial.  Here are some interesting factoids from one insurance company’s 38 year history of paying long term care claims.

— Most expensive (for the insurance company) claims: Dementia & Parkinson’s.

— Youngest claimant: 27 years old.

— Oldest claimant: 103 years old.

— Average age of claimant: 79 years old.

— Longest claim: 19.6 years.

— Most expensive claim (benefits are still being paid): $1,300,000.

— 71% of all claimants are women.

— 29% of all claimants are men.

— 51% of all claimants went on claim due to dementia & cognitive issues.

— 15% of all claims lasted more than 5 years.

—  Average length of claim, if on claim more than 1 year: 3.9 years.

— 71% of all claims started with home care.

— 13% of all claims started with assisted living facilities.

— 16% of all claims started with nursing homes.

— 61% of all claims were closed because the person died.

— 28% of all claims were closed because the person recovered & no longer needed care.

— 11% of all claims were closed because the policy benefits had been exhausted.

— 38% of all claimants were single women.

— 28% of all claimants were married women.

— 10% of all claimants were single men.

— 24% of all claimants were married men.

What conclusions can be drawn from this analysis?  I invite your comments.  I have my thoughts & would like to know yours.  You can send an email to ray@LTCinsuranceGuy.com  or call me at 303-699-4172.  Please note that these statistics apply only to people who needed long term care services and who had in-force long term care insurance.  The numbers do not apply to the large majority who did not have insurance when they needed help in getting through the day.

 

Disclaimer: Actual policy language, rather than the contents of this eNewsletter always takes precedence. Long term care insurance policies vary widely from company to company & often within the same company. Your own claim may, or may not, be similar to anything illustrated in this eNewsletter.  Every situation (& long term care insurance policy) is different.  Raymond Smith, The Long Term Care Specialist, does not give legal or tax advice. Consult your tax advisor or attorney for legal or tax matters.

 

© Raymond Smith, The Long Term Care Specialist, 2015