Receiving a monthly allowance to pay for outside help when, as you get older, you can no longer be independent: this is the principle of long-term care insurance. But the observation of insurance companies and brokers is clear: this type of product is not taking off.
The professional federation France Assureurs thus estimates that, in 2021, 6.6 million people were covered, for a total of contributions paid in the year of 833 million euros, all types of insurers combined.
Low figures, which are also falling: in 2019, it was 7.4 million people and 814 million euros in contributions. By way of comparison, car insurance premiums represent nearly 25 billion euros for 40 million policyholders (however, this is a compulsory guarantee).
However, France should have, in 2050, 4 million seniors (60 years and over) dependent against 1.5 million at the end of 2017, according to the INSEE estimates published in 2020.
Why is long-term care insurance not convincing, when the median price of a place in a residential establishment for dependent elderly people amounts to 2,004 euros (2019 figure established by the National Solidarity Fund for Autonomyincluding accommodation and dependency rates, before any aid)? “The public is not interested in it because the sum is paid out of pocket: the person takes out insurance but may never need the pension if he is not dependent”explains Vincent Harel, vice-president in charge of personal insurance at Planète CSCA, a syndicate of insurance brokers.
Less than 500 euros per month
Another obstacle: the ratio between the money paid and the pension received in the event of dependency is not necessarily interesting. “What is the amount of the monthly annuity paid when the risk materializes? It is mostly less than 500 euros per month and essentially covers household, medical or personal help.according to a survey published, at the end of 2021, by France Assureurs in its white paper “Building a new supportive and transparent solution to age-related dependency”. Amount including “to be compared with the cost estimated by the French for expenses related to maintaining a dependent person at home: from 500 to 1,500 euros per month for 35% of those questioned, more than 1,500 euros for 35%”continues the federation.
“It is a pity that this product does not work, because it makes it possible to lighten the daily life of carers or can contribute to paying for a quality medical establishment, which is not to be scorned”deplores Cyrille Chartier-Kastler, founder of the strategy consulting firm Facts & Figures. “The need for coverage exists and will exist more and more, but the French who have a savings capacity think first of strengthening their retirement”he believes.