LTC Tree, a network of licensed agents, recently conducted a study to find how many policyholders actually end up using their long-term care insurance benefits. Based on their analytics and internal data, the organization found that one in three policyholders use their policy.
On average, the need for long-term care is about 50 percent for the general population, according to industry statistics. However, results of the study show that one-third but not all policyholders will tap into their coverage. Data reveals two reasons for this: First, they go through life not experiencing a long-term care event and second, their need for care services is shorter than their policy’s elimination period.
How Long Benefits are used
The average length of a long-term care insurance claim is 3.9 years. Meanwhile, the study found that 15 percent will use their benefits for one year or less, while 18 percent will need coverage for one year or more.
Is LTCI worth it?
Evidently, not everyone will use their long-term care insurance benefits, but according to the organization, one in three is still a high statistic. Industry experts note that’s a number you don’t want to take a gamble on, especially in terms of the cost of long-term care and the future of your finances.
With that, many can say that yes, LTCI is worth it. Getting your money’s worth is not only measured through how much of your benefits you were able to use, but also in the amount of peace of mind having the coverage can give you. Whether you triggered your benefits or not, the real worth of LTCi is the protection it provided over your assets and family against possible long term care events, according to some financial planners.
The Advantages of LTCI
Long term care insurance is essential to have because it gives the following:
- Financial Protection – Just like any type of insurance policy, LTCI offers protection or assistance when a long term care need presents itself. Having this policy in place will protect your assets and will prevent your nest-egg from being depleted due to care expenses.
- Quality of Care – Because LTCI covers for a variety of care settings, the quality of care is ensured. When you have this policy, the quality of your care will not be compromised because of financial reasons.
- Options – LTCI is designed to pay for a variety of care services and providers. With that, you have a lot of options in terms of who will take care of you and where care will be administered, whether at a facility or at home if possible.
- Independence – Being a policyholder will enable you to retain your independence to some extent. When you have LTCI, you don’t need to rely on your family and loved ones for your care needs. You are sparing them from the financial and emotional toll of caregiving and at the same time, you are able to still experience a good quality of life.
- Peace of mind – More than anything, LTCI offers a sense of assurance that you and your family are protected from the impact of long term care. That, in itself, can be worth more than any amount.