Archive for October, 2012

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

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

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