Here are some interesting facts about long-term care that you may not know, based on an analysis of more than 160,000 claims paid by a leading insurance company in 2011:
1). 71% of claims have been paid to female claimants.
2). Single women are the biggest claimants, accounting for 38% of all claims. Married women are second, followed by married men then single men.
3). Half of all claim dollars are paid to claimants with mental disorders including dementia.
4). The most common causes behind claims for women are dementia, cancer, fractures and stroke. For men, the most common causes are dementia, cancer, stroke and Parkinson’s.
5). The average age of claimants is 78.
6). A little less than half of all claims (43%) are short-term in duration and last less than one year.
7). Most often (71% of the time) benefits are first paid to cover home health care benefits. Only 13% of initial claims are for assisted living benefits and only 16% pay for nursing home benefits.
The Takeaway: If you thought long-term care insurance was only to pay for a nursing home, you can see from the above information that you’re only seeing part of the picture. Long-term care is arguably most important for women, both single and married, in covering home health care needs, especially for disorders like dementia. There are various ways to cover your long-term care needs, including some new approaches that protect you from rising costs and uncertain benefits. Ask us to discuss your options during your next Annual Review.