Thanks to the U.S. Department of Health and Human Services, we now have a 28-month study that follows the claims experiences of 1500 long-term care policyholders/claimants.  If you are thinking about buying long-term care insurance, you may find this study useful.  The study was made up of claimants from 10 companies that, in sum, hold over 80 percent of in force Long-Term Care insurance policies.

Executive Summary: Positive Findings

We are uplifted whenever we see people having a positive claims experience.  Insurance companies are naturally distrusted by the public and for good reason in many cases.  Here was one positive finding:

Satisfaction with Service Providers

• When looking at satisfaction as a dichotomous variable, satisfaction rates in all service settings across all Waves are very high.
• When focusing on those who reported very high satisfaction levels, however, nursing home residents are least likely to report that they are very satisfied and this group has the largest decline in satisfaction over time -- with less than half reporting that they are very satisfied by the end of the follow-up period.

While we will not report the entire findings of the study here, we have linked to it above.  It's 55 pages, after all.  One key finding that may help LTC insurance shoppers is this:

• Nursing home residents incurred the highest monthly cost ($5,561) whereas assisted living residents had the lowest average costs -- $2,653.
• Home care recipients spent $3,601 and those individuals who were not receiving paid care at the baseline interview but subsequently began using care, spent an average of $1,746.

 Obviously, costs will vary based on geography, but as a national average, anywhere from $80 - $180/day is needed for the entire cost of long-term care.  Our approach is to have clients consider insuring the majority of the risk, but not all.  Other incomes such as social security and pensions may be able to help pay, and you will enjoy lower premiums by taking such an approach.

We consult daily on long-term care insurance.  You may request information below.  Thanks a lot for checking in with us today.