Does the Long Term Care Insurance Industry Really Pay Claims?
Long term care insurance carriers began incurring over $1 billion in claims per year around 1996 (four years before I began to specialize in helping people plan for long term care). The industry now averages $1 billion of incurred claims every six weeks!
In 2014 there were 254,910 claims incurred totaling more than $8.7 billion. Claims incurred in 2015 are projected to have exceeded $9.3 billion. Cumulative incurred claims will exceed $100 billion before the end of 2016. Yes. The industry really does pay claims...a bunch of them!
Source: National Association of Insurance Commissioners, LTC Experience Report
Why Are People Resistant to Planning for Long Term Care?
Because people are people. We tend to do the things that bring us pleasure & avoid those which cause pain. A few examples: Thinking about a vacation, being at a child's or grandchild's graduation or wedding (I can see you grinning!), bringing home a brand new car, receiving a well-deserved award are all things we happily do...because they bring us pleasure.
On the other hand: taking that new car to the shop...Read More
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