do I Need a contract to finance its loss of autonomy ? At the dawn of a large-scale reform, nothing is less sure. Explanations.
With an average of 1758 euros monthly (1) to pay into a retirement home, the note to be paid by the families (the famous "rest load") can be salty. These costs motivate the French the most modest to want to ensure, for example, not to weigh financially on their children. Only here, the disputes between insurers and insured explode. Difficulty to play the guarantees taken, flights of premiums, waiting periods, and franchise... "These contracts are very restrictive, which leads to big disappointments-side insured," says Nicolas Roques, an expert of the firm Studied.
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The deal is expected to change soon. Édouard Philippe stated in his general policy speech : the government will introduce at the end of the year, a draft law on dependency. It should be based on the report by Dominique Libault, delivered last march to the minister of Health, who calls for "the recognition of the loss of autonomy of the elderly as a risk to social protection as a whole." In other words, as for retirement, the national solidarity would serve to support the risk of dependence.Your support is essential. Subscribe for $ 1 support Us
contracts limited interest
Among the measures recommended by the report, the establishment of an aid of 300 euros to finance a retirement home for French in which the revenues estimated to earn between 1000 and 1600 euros per month. At the same time, a "shield self" would remove any remaining burden to the residents in a retirement home, in a hefty loss of autonomy, beyond four years. New allocations which, if they were to occur, would limit the interest of ltc policies.
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The insurance companies themselves expect to know the content of the law old age and autonomy to modernize their offer and review their safeguards and benefits. However, contracts of new generation might prove to be more interesting than the former. In terms of long-term care insurance, it would not be a novelty : the first products marketed in the 1990s covered only the dependence total, while those proposed from the beginning of 2000 included also the partial dependency, and that, since the decade of 2010, the contracts provide services and assistance extended. Problem : once subscribed, it is impossible to change the contract - even within the same company - without losing all or part of the rights acquired.
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points to know
Am I covered right from the signing of the contract ? What happens if I stop contributing ? Difficult to find in contracts that can make 30 pages and more. Documents are often complex, abstruse and confused... was already criticising the Ombudsman of insurance in its balance sheet by 2017.
1. Your contributions can fly
The pill may be hard to swallow, but "all of the insurers include a clause which enables them to increase their fee if the contract is no longer profitable," recalls Paul Disset, head of project analysis of insurance products for the magazine, the records of the savings, which evaluates each year the ltc policies on the market. And this is what happened in the recent past on certain contracts which are no longer marketed today, such as Protectys of the postal Bank, or Future Autonomy of Groupama. The key, increases of 5% to 10% per year. Certainly, the insured is free to accept them or not, but in case of refusal, guarantees will decrease in the same proportions.
2. The amount of the pension is not automatically upgraded
Another bad surprise : the amount of the pension determined when the subscription is not moving. However, "the fact of inflation, of € 1000, will not produce the same level of service in 20 or 30 years," says Yannick Tanguy, an actuary within the health directorate provident borrower and the dependence of Allianz France. So take the time to look at whether the revaluation of your benefits (annuity and capital) is provided and at what pace.
3. You could lose everything if you stop to contribute
You change your mind after a few years of subscription ? Distrust. If you stop contributions before eight years all is lost. In contrast, most insurers guarantee a reduced fee (20, 30, 40%... of the amount of the annuity) as soon as you have collected at least eight solid years. This is confirmed by Natalie Aubonnet, director, retirement and dependency individual Axa France. It recommends, moreover, to the insured persons concerned "to clarify that information on to their loved ones." If in doubt, to check if one of your relatives has subscribed such a contract, see the Act on the Internet or writing to Be Research contracts, dependency - TSA 30180 - 75441 Paris cedex 09.
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4. Your contract does not cover you immediately
Although you have signed a contract and paid your dues, you are not immediately covered. All contracts palready provided for such waiting period in case of illness : it is generally three years for neurodegenerative diseases or psychiatric disorders and one year for other pathologies. In clear, if you declare a Parkinson's disease 26 months after signing your contract, the insurer will only award you or pension, or capital. In practice, it will terminate your contract and will reimburse you for your contributions. One exception : there is no failure if the dependency occurs after an accident.
5. No pension is paid the first three month
"time deductible" of 90 days also apply to most contracts. Specifically, if the insurer notes your state of dependency on 10 June, you will begin to receive a monthly annuity, the better, from the 9 September. in And in case of death during this period, no payment will be due. "The warranty dependency has for its object the support of the people who come in a risk for several years, accompanying them in their home or in their follow-up in the institution. It is not intended to cover the very short period of end-of-life ", justifies Maissetou Coulibaly, head of business health & welfare at Groupama.
so Many elements to consider before you commit.
Read our complete file1977 euros per month : the median price of a house in long-term care facilities is increasing Compensation for family caregivers : "Three months, it is largely insufficient" Great age : the reform in limbo
(1) Study Dependency of the elderly : who pays for what ? the Directorate of research, studies, evaluation and statistics (Drees)