11 Million Reasons Why Long-Term Care Insurance Is Working

In the world of long-term care insurance, it seems like a broken record when it comes to the press: let’s report what’s wrong and what’s not working, like this article from Time online. I suppose if you take a broader look, that’s what happens in all areas of life. Negative seems to sell more papers (or get more online eyeballs).

I don’t want to dwell on that part. I’ve tried to balance out one-sided information about long-term care insurance that appears in the press in posts on this blog, such as when I addressed the hue-and-cry over premium increases. Instead, I want people to hear what is working about long-term care insurance—specifically 11 million reasons spread across the country.

Almost $11 million—that is how much the top 10 long-term care insurers are paying out each day in benefits to 5.75 million policyholders, according to a new study conducted by the American Association for Long-Term Care Insurance (AALTCI). That adds up to nearly $4 billion a year in money that goes into communities across the country to help people get the long-term care they need.

Sometimes numbers that large can make your head spin, so I’ll make it personal for you. I have a colleague, Dave, who did comprehensive financial planning for many years. Because he was not an expert in long-term care insurance, he came to me for help. I helped Dave place long-term care insurance with nine households—many of them friends and neighbors. To date, seven of his clients have accessed their long-term care benefits. And not too long ago, Dave, now 85, called me to say it was time for me to help him with his claim as well, as his wife has Alzheimer’s. Two million dollars of long-term care benefits have flowed into Dave’s neighborhood and community because he helped his clients plan for all eventualities.

These are some of the numbers that I wish the press would report. Until they do, however, I will continue to write and speak about them.

  1. It is critical that we get the baby boomers to pass the risk of their LTC costs to private insurance carriers through LTC insurance policies. The costs will be too much for the government to handle. Good article

  2. Long term care is something no one thinks they’ll ever need… until they actually do. Part of the problem is self denial and that’s difficult to overcome, but part of the problem is a lack of education regarding what long term care really is. Many honestly believe that no one in their family ever needed long term care, but they often overlook the long term care that was provided to a loved family member by a spouse, child, or those within their social network. Therefore they confuse the long term care with how it was provided. Almost everyone will need care in some shape or form, so the real question is who will provide it and at what cost. Whether it’s a human cost, an emotional cost, or a financial cost, the real cost of long term care is huge.

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