3 questions to ask yourself about long term care insurance

3 questions to ask yourself about long term care insurance

As life expectancy increases, so does the risk of loss of independence. Currently, 1 million people are dependent on their entourage in France, a figure that could climb to more than 2.3 million by 2060. Although reception facilities and dedicated assistance services are multiplying, their costs still represent a certain financial burden. In order to prevent your loved ones from bearing the high costs of the latter, the insurers have set up long-term care insurance contracts.

Gradually, these contracts are beginning to find a place in the insurance market. For its part, the state would even consider making it unavoidable. However, several questions remain unanswered: how much do these contracts cost? When to join? We go around, sort out everything you need to know about it.

First, what is dependency insurance?
The monthly cost of dependence exceeds the € 2,000 / month in France . For most senior citizens, the amount of the retirement pension accumulated in the amount of the APA (Self-Sufficiency Allowance) is not sufficient to cover all expenses. The dependency insurance is therefore a complement of resources that allows to assume the costs of the loss of autonomy.

The Personalized Autonomy Allowance is an aid that can help pay for some of the costs of dependency. On average, this aid is about 450 € / month.

To deal with these costs, which can quickly become expensive, insurers have created a type of contract that allows them to cope with expenses related to loss of autonomy when it occurs. In most cases, the contract takes the form of a monthly pension, which the beneficiary begins to cash as soon as the situation of dependence arrives.

You should know that there are 2 types of coverage in a long-term care insurance:
The total dependence which results in a payment to 100% of the annuity provided in the contract.
the partial dependence which represents a part of the planned amount in case of total dependence, variable according to the degree of dependence.
The degree of dependence is determined either by your attending physician or by a doctor chosen by the insurance company.

What is its cost?
As in any insurance contract, everything depends on the guarantees. Age and the desired annuity affect the amount of contributions payable. For example: In case of 60-year subscription, to make 500 € of pension, it will be necessary to contribute about 30 € per month. If the subscription takes place at 70, it will be necessary to add about 15 € more to the previous monthly amount.

Do not hesitate to compare different contracts and compete to obtain the best possible guarantees at the best price. To do so, it is advisable to choose an insurance broker (As for example: http://good-assurance.com ).

At what age should one join?
Of course, the sooner you go, the better. Moreover, it is even possible that some companies will refuse a contract if you exceed 69 years.

In general, it is good to start thinking about those between 55 and 65 years depending on your state of health. In addition, you should know that during a subscription, you may be asked to complete a medical questionnaire associated with health exams.

Following this, if you are classified as a risk profile it is possible that you are denied access to such a contract or with the application of a surcharge.

If a pathology is already known at the time of the subscription of the contract, the dependence which it could lead will not be covered.

In conclusion, we must consider this contract when we are in good shape ... a form of paradox.


Post a Comment