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Is long term care insurance a good plan?



One of the common symptoms of old age is loss of independence, in whole or in part. The five basic gestures of everyday life become burdens for the person suffering from them. Getting up, getting dressed, eating, taking a shower or a bath, doing your shopping… long-term care insurance is a provident contract, which allows you to anticipate a future in which you too may lose your independence. But is this a good tip? Decryption.

Several insurance models

Partial dependence

We consider a person to be in a state of partial dependence from the moment when it becomes impossible for him to perform two of the five basic everyday gestures. Having subscribed to long-term care insurance, the person will pay a monthly contribution of an amount between 20 and 100 euros.

This will be valid until it reaches the total ceiling previously fixed in the contract. The person considered as partially dependent will benefit from an annuity corresponding to 50% of the total sum provided in the case of total dependence (sum which can amount up to 1500 euros per month).

Heavy (or total) dependence

Anyone deprived of their ability to perform at least four of the five basic gestures of daily life is considered to be heavily dependent. She will therefore benefit from the entire anticipated pension. The latter will be necessary to finance constant help at home and / or placement in a specialized center. It will also count for various health-related expenses.

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The advantages of long-term care insurance

Looking at the statistics, the existence of long-term care insurance in France seems obvious . More than a million elderly people are today considered to be dependent. In addition, almost 20% of the French population is today over 65 years old!

This insurance provides that you can subscribe to it from the age of 40, which gives you ample time to anticipate your future. But even until the last quarter of your seventieth decade, you won't have too much trouble finding an insurer willing to contract with you .

By subscribing, you guarantee yourself:

  • A dependency pension ad vitam aeternam
  • A daily support service during your dependency period
  • A capital will allow for example the preparation of your funeral
  • Expert advice to prevent loss of independence
  • Greater serenity in the family circle, the possible burden of dependence being - at least partially - taken care of.

So much for the benefits. But long-term care insurance also has other facets.



Significant black dots

Whatever insurer is chosen, and whatever the terms and conditions, it will ultimately never be anything other than a sunken fund contract. In other words, by subscribing you take the risk of never becoming dependent and therefore of contributing for nothing.

And even if you become superficially dependent, all the part of the capital constituted by your contributions that you will not have had time to collect in the form of an annuity before the day of your death, will not be paid back to your heirs but will be pocketed by the insurer. Under such conditions, it seems preferable to subscribe to life insurance, thanks to which you can choose to collect in one go the entire accumulated capital.

Another gray area of ​​long-term care insurance is found in the clauses that mark out many of these contracts. It is not uncommon for these clauses to be worded somewhat underhanded. For example, it may not be specified that a contribution is not guaranteed over time and is likely to increase from year to year.

It can also be an excessively long take-over time, which amounts to paying a fortune in a restaurant for poor table service. It can even go as far as lying clauses prohibiting you from going to court when it is your strictest right. One word therefore: be careful with long-term care insurance!

It can be very helpful, of course, but other solutions, as long as they are possible, are also worth studying, especially if you are not doing a job that is dangerous for your health and if there is no history of loss of independence in your family as you approach old age.

Read Also : Practical information on life insurance for novices

watchincalm
watchincalm
I have ambitions and goals in my life, and I am now trying to achieve them calmly, as the name also came on my channel and website.

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