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.
• $1.2 million is the largest single claim
• 50% of all claim dollars are paid to claimants with mental disorders including dementia
• 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
Member: AALTCI, NAHU, NAIFA, SOA
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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