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Understanding Your Long Term Care Insurance Benefits, Part 11: Concerns About Exhausting Your Policy Benefits

The purpose of this video is to go over some statistics surrounding exhausting benefits of long-term care insurance policies.

This video is part 11 of a video series that has been created to help individuals obtain a better understanding of Long-Term Care Insurance. More specifically, what Long-Term Care is, who needs Long-Term Care, what the types of Long-Term Care are, what Long-Term Care Insurance covers, Considerations, and whether or not someone can still purchase long-term care insurance.

The entire video series can be found here on our YouTube channel:


I show this slide to try to calm some fears about exhausting your long-term care insurance policy benefits.

At the top of the slide, I show some information that I got from the American Association for Long-Term Care Insurance, which shows the top causes for long-term care insurance claims. Oftentimes individuals will say, you know, I'm too young, I'm only in my late sixties or my early seventies, and I don't need care just yet. Well, if there is cancer or that person has a chronic illness, it might not be a bad idea to go ahead and initiate a claim because these statistics show that most of us are not going to use our entire policies.

Which leads into my next group of statistics because I want everyone to understand that most likely you will not run out of benefits. As you can see, the possibility of having a claim that lasts longer than five years is only 4.5%. And then when you look at having a claim of more than three years, that's still only 13.1%. And as you can see, I've bolded in red that only 13% of long-term care insurance claims end because the policy benefits have been exhausted. 67% are due to death, and 20% are due to recovery. So if you have the fear that you're possibly going to exhaust your entire policy, the chances are slim that that actually is going to happen. However, if it is going to happen, it most likely would happen if the individual has transitioned into a skilled nursing facility or an assisted living community where they have to pay a lot of money to be there.

The possibility of someone exhausting a three-year benefit when having in-home care services is actually less than 3%. It's about 2.5%. Like I was saying earlier, if an individual were to move into an assisted living community or skilled nursing community, the probability is higher because, obviously, the cost associated with living in those facilities or communities is most likely higher. That probability is about 26.1%.

Also, I just wanted to show some scenarios here from a study from the American Association for Long-Term Care Insurance back in 2009. I tried to find a more updated graphic but I could not find one. But I thought these were interesting and truly illustrate the value of some of these long-term care insurance policies. As you can see from these real-life claims, the benefits received were 1.2 million, 1.02 million, 990,000, and 690,000.

Thank you for watching this video. Make sure you watch the next video as we continue this discussion about long-term care insurance policies.


Home Helpers of Bradenton is one of the region's leading home care franchises specializing in comprehensive services for seniors. Home Helpers' sole mission is to make life easier for clients and their families. Based in Bradenton, Florida, the company serves all of Manatee County, including the communities of Anna Maria, Bradenton, Bradenton Beach, Ellenton, Holmes Beach, Lakewood Ranch, Longboat Key, Palmetto, and Parrish. For more information or to request a free in-home care assessment, contact our office at (941) 499-5946 or visit our website