11 Million Reasons Why Long-Term Care Insurance Is Working

February 15, 2011(Original post date)
Deb Newman, CLU, ChFC, LTCP, Chair of the LIFE Foundation Board of Directors 

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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.