The French population is gradually aging due to increased life expectancy and in return a low birth rate. In 2020, the over 60s represent almost 26% of the population.
In 2050, they will represent almost 32% of the population. Aging leads to an increase in health problems, but also to an increase in people in a dependency situation. However, the loss of autonomy is costly when it requires daily intervention from a third party. There is government support such as APA, the Personal Autonomy Allowance. However, to anticipate this financial risk, it is preferable to take out long-term care insurance. Let’s take a look at this contract and how to get onesimulation of dependency insurance online for free.
Why take out insurance in anticipation of addiction?
Dependent seniors or seniors with loss of autonomy have the choice between two solutions:
- Support at home with appropriate equipment and help from a third party.
- A place in a specialized care institution such as an EHPAD.
Whichever solution is chosen, they have a significant cost, around €2,200/month for the first and €2,500/month for the second. The old-age pension and APA are often insufficient to cover all the costs. Seniors therefore anticipate the financial burden of the risk of loss of autonomy by taking out long-term care insurance. This is an individual or collective insurance contract available to any adult. Dependent insurance is for dependent seniors, low-income seniors or seniors affected by a situation of gradual loss of autonomy. Physical or mental dependence as a result of an accident or illness can affect anyone, regardless of age. Therefore, there is no minimum age to take out long-term care insurance, although subscriptions mainly concern people over 40. As for the maximum membership age accepted by insurance companies, it ranges from 65 to 75 years on average.
What type of long-term care insurance should I take out?
Dependent insurance is a life support contract that provides payment of an annuity when the loss of autonomy is established. The amount varies between €500 and €1,000 on average. A capital can be associated with it. It is used, among other things, to pay expenses for specific equipment for the home. Attention, whoever says cash advance contract also says non-refundable contract! If the risk never occurs, the contributions are not refunded. Regarding the type of contract, it depends on the formula drawn. Insurance companies offer contracts that guarantee total dependence or contracts that guarantee partial loss of autonomy and total dependence. A long-term care insurance simulation with a free online simulator provides an overview of the size of the required pension.
How is addiction assessed?
Two grids are available to assess a major or partial loss of autonomy: the AGGIR grid and the AVQ grid. The AGGIR grid is used for APA. It has 6 levels of dependency, GIR (iso-resource groups) rated from 1 to 6. GIR 1 corresponds to total dependency requiring permanent help from a third party. GIR 6 corresponds to a perfectly autonomous person to carry out everyday gestures on their own. The ADL grid for activities of daily living identifies 6 activities that the person must perform alone: eating, dressing, moving around, defecating, transferring, washing. If a person cannot perform 3 to 4 actions on their own, they are declared to have a total loss of autonomy.
When does the long-term care insurance guarantee start?
In order for the guarantee of total dependence or partial dependence to engage, it is necessary that the loss of autonomy be noted. The insurance companies appoint a medical adviser. It assesses the degree of dependence based on the AGGIR grid or the AVQ grid. If the dependency threshold, as defined in the contract, is reached, the insurance company pays the annuity and/or the capital. It is 100% in the case of a large dependency and 50% of the amount in the case of partial dependency. The methods for assessing a loss of autonomy depend on each individual insurance company. They are free to determine their criteria. That is why, to avoid disappointment, it is imperative to check them before signing a long-term care insurance policy.
How much does long-term care insurance cost?
Without simulating dependency insurance and obtaining a personalized quote with a free online simulator, it is very difficult to provide a contract rate. Prices sometimes vary from single to double from one insurance company to another. Free to set their rates, the insurance companies, apart from their business policy, take into account several parameters, namely:
- Age of the insured.
- The insured’s state of health.
- Contract type: total dependency and/or partial dependency.
- The size of the pension.
- The amount of capital.
- Additional services and assistance services are subscribed.
The younger the insured is at the time of signing the long-term care insurance contract, the lower his premium will be. Normally, the amount remains unchanged regardless of age. On the other hand, the younger the insured contributes, the more contributions he will pay, as the risk will potentially arise later. On average, long-term care insurance, taken out at age 60, costs €30/month with a total pension of €500/month. This premium may be increased depending on the health condition of the insured. In order to validate membership and determine the rate, insurance companies ask for a medical history in the form of a simple statement, a health questionnaire or more in-depth examinations. The insurance company is entitled to refuse to take out long-term care insurance if the insured poses a worsening health risk.
How to get a long-term care insurance simulation?
Dependent insurance is marketed by various service providers such as an insurance company, a mutual insurance company, a pension institution or a bank. Dematerialized offers are common in the market today. It is therefore very easy to get a dependency insurance simulation with a free online simulator on the website of the provider of your choice. All you have to do is fill out a form stating your needs, profile, identity and contact details. In a few minutes, the senior obtains a 100% personal offer for long-term care insurance.
How about the comparator or specialist broker to find long term care insurance?
Instead of requesting one long-term care insurance simulation after another, it is preferable to put the offers in competition via an online comparator. The senior obtains a selection of the best offers quickly and free of charge, adapted in relation to the guarantee and budget. The online comparator works like a simulator with the difference that it simultaneously analyzes dozens of proposals from different service providers. If the senior prefers to be accompanied in his search, he can authorize a specialized broker either online or in an agency. This intermediary is an expert in long-term care insurance. It has a wide network of partners to negotiate a competitive contract.
What criteria should be compared with long-term care insurance?
Choosing long-term care insurance means, above all, comparing several offers. In addition to the price of the contribution, it is therefore necessary to check several criteria such as:
- Membership formalities: age and health questionnaire.
- Terms and conditions for writing up the prize.
- Waiting and deduction periods.
- Criteria for assessment of abuse.
- Possibility of payment of part of the capital interest.
- Warranty disclaimers.
- Additional warranties and optional support services.
- The reduction clause to limit the payment of non-refundable contributions.
Finally, the GAD brand can tip the balance in favor of one long-term care insurance offer over another. The dependency insurance guarantee, created in 2013 by France Assureurs, formerly FFA, is a mark of quality. GAD-marked contracts meet 9 criteria for greater transparency, such as:
- a common set of guarantees;
- payment of a minimum pension in case of great dependency;
- no medical questionnaire before age 50;
- preventive measures;
- a common vocabulary etc.