Long-Term Care Policies That Really Paid Off

If you have ever had a family member or loved one who needed long-term care, you know how expensive that care can be.

While premiums can be high, some purchasers of long-term care insurance get many times their money’s worth back in benefits, according to claims data compiled by the American Association for Long-Term Care Insurance.

In fact, the largest open long-term care claim today is for $1.7 million.  The policy was purchased by a 43 year-old woman who paid $881 per year for the coverage.  She filed her claim only three years later, at age 46, and has been receiving benefits for almost 15 years (if you do the math, that’s about $113,000 per year in benefits received).

The second largest open claim is for a man who purchased his policy at age 45, paid $3,374 per year in premiums for four years, then filed for benefits.   Over the last 6 years , he has received over $1.2 million (or about $200,000 per year) in benefits.

Although these two large claims involve younger claimants, most new claims (almost 90%) are filed by individuals age 70 or over.

Want to know more about long-term care and different ways to cover the cost?  Just let us know so we can discuss the latest industry trends with you.

About Mari Adam

Mari Adam, Certified Financial Planner™ has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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