Group Long Term Care Insurance

Employers may offer group long term care insurance plans to employees. There are several advantages and disadvantages to a group long term care insurance depending on your needs and qualification.

Advantages of Group Long Term Care Insurance Plans

• You may not have to meet any medical requirements to obtain a long term care policy.
• Your relatives may also apply for the policy. Many group long term care insurance plans allow retirees, spouses, parents, and parents-in-law to apply for the long term care coverage.
• Some long term care insurance companies will let you keep the coverage if your employment ends or your employer drops the group plan.
• Group long term care insurance plans with a high proportion of young employees and with 20% or better participation, can often get premiums that are much cheaper than individually underwritten policies.

Disadvantage to Group Long Term Care Insurance Plans:

• Higher rates for younger people. Because younger people are grouped in with older or sick and disabled employees in the group, the average premium for a person under 55 may be higher than an individual plan.
• Higher administrative costs from insurers are passed to participants.
• Group long term care insurance plans may have restricted benefits. Healthy employees can miss many advantages and options. To make the plan more affordable to more employees, the benefit period may be inadequate and inflation protection may not be offered or may also be inadequate.

If you are an employer or a human resource representative and are seeking a group long term care insurance plan for your company, contact us directly.