 Group Long Term Care Insurance
Policies
Group long term care insurance can be bought from your employer.
Employers may offer long-term care insurance as an employment
benefit. The coverage provided by these employer Group Long Term
Care Insurance policies is similar to what you could buy from an
independent agent. Companies that provide
long-term care insurance can give their employees a choice of
benefit periods, maximum payments, and elimination periods. Below
are advantages and disadvantages of Group Long Term Care Insurance
Advantages of Group Long Term Care Insurance Plans:
- Employees
usually do not have to pass any medical requirements to qualify for
the Group Long term Care Insurance Policy.
- Many employers also allow employees to buy coverage for their
parents, which could be an advantage. Spouses and parent-in-laws
can also buy coverage. Typically, employees' parents and parent-in-laws
must pass the company's medical screening to qualify for coverage.
- Group
Long Term Care Insurance policies may also offer non-forfeiture
benefits and inflation protection and allow employees to keep their
insurance
coverage after
they
leave their
employer. They do this by offering continuation of coverage or conversion
options.
- Group long term care insurance plans
with a high percentage of participating young employees
can often get premiums
that are much cheaper than individually underwritten
policies.
If your child's
company offers such Group Long Term Care Insurance coverage, be sure
to
consider
it
carefully. It may offer advantages you won't find if you try to buy a policy
on
your own.
Disadvantage to Group Long Term Care Insurance Plans:
- People under 55 years of age are grouped
in with older
or sick
and disabled
employees and may end up with higher insurance
premium rates than buying a individual plan from a Long
Term Care insurance agent.
- Higher administrative costs from
insurers are passed to participants.
- Group long term care insurance plans may
have restricted benefits and may not be tailored to your individual
needs. Healthy employees can miss many advantages and options.
Benefit periods
may be
inadequate and inflation protection may not be offered
or
may be also be inadequate.
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