What is Long Term Care

Breaking Down The Long Term Care Claim In Numbers

Breaking Down the Long Term Care Claim In Numbers

Now that Long Term Care Insurance has been around for a while, sufficient data has been accumulated so that we have a good grasp on claims. The industry is paying a very large amount of dollars in claims – some $6.6 billion in benefits was paid to about 200,000 individuals in 2011 – all of you should be aware of this information.

Here is an analysis of the more than 160,000 claims that a leading carrier paid by the end of 2011.

In Dollars
• $1.2 million is the largest single claim
• 50% of all claim dollars are paid to claimants with mental disorders including dementia

Benefit Recipients
• 78.7 is the average age of claimants. At age 80, it’s approximately 26% of claims, age 85 it’s about 24% of claims and age 90 it’s 9%
• Youngest claimant is 28; oldest is 103
• 71% of claims have been paid to female claimants
• Married women tend to claim at an earlier age than single women and men

Length of Claims
• 43% of claims last less than one years due to short recoverable illness, a sudden terminal illness or a single use of non-caregiving benefits
• The average length of claims that last more than a year is 4-9 years
• 35% of claims will last more than five years
• Of 100 people, 80 do not transition from where they receive their initial care.

Who Goes On Claim And For What – By Gender And Cause
• Single Women – 38% of all claims
• Married Women – 27% of all claims
• Single Men – 11% of all claims
• Married Men – 24% of all claims
• Women – Dementia, Cancer, Fractures, Stroke
• Men – Dementia, Cancer, Stroke, Parkinson’s

Of all the claims, 59% died while on claims, 30% recovered and 11% exhausted their benefits.

(Source – *AALTCI Source Book)

Abe Glickman, LTCA, LTCP
Abe Glickman Insurance Group
Toll-Free Phone: 877-298-5824
Email: AG@AbeGlickman.com

“It is better to create a plan 10 years too soon than one day too late.”

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What is Long Term Care

Many people think “Long Term Care” means a nursing home. In fact, Long Term Care includes a wide continuum of care situations. Some people receive Long Term Care in an Assisted Living Facility, others attend an Adult Day Care Facility, and for many, Long Term Care can also be received in your own home.

The level of care depends on several factors. These include the type of impairment, the severity of impairment, and in some cases, the ability to pay for care.

Long Term Care services may be necessary at any age. The following are three of the most common reasons for Long Term Care:

•Short Term Medical Treatment – Long Term care may be needed when an individual is recovering from surgery or other temporary conditions. For many, Long Term Care helps leaving the hospital and going home.
•Accidents and Injuries – Acute conditions such as broken hips, strokes, disabling accidents and heart attacks often require a longer period of Long Term Care.
•Chronic Illness – Ongoing conditions such as dementia, emphysema or even functional decline (due to the aging process) will result in an extended need for Long Term Care services.
Long Term care services are generally custodial and personal in nature. Because neither Medicare nor medical insurance pay for any custodial care, this should be a major concern to you.