Long Term Care Group Policies.
Are they worth it?

Author: Walt Ptashnik

Many people believe that a Group Long term care policy is a good deal and do not shop around. This can be a very big and costly mistake.

Unlike group health insurance plans, group long term care plans can be more expensive and most often are. Plans available as an individual plan in most cases are the better buy.

Why is an individual long term care policy a better buy? Under a group plan, everyone gets the same rate, so if you are healthy person you will be paying the same amount as an unhealthy person. Individual plans have different rates based on the person’s health.

Areas to be aware of

Elimination period or Deductible.
Most group plans are days of service rather then calendar days. This can be very costly when the time comes for needing care. For example, if the plan has a 90 day calendar day deductible, then 90 days is just that, 90 days; however a service day deductible is quite different.

Let us assume that care is only needed three days a week not 7 days a week. It will then take over six months to satisfy that deductible. Also with some Insurers you must satisfy that deductible within a six month period.

Inflation protection.
Most group plans do not have a built in inflation protector, which increases the policy benefit without increasing the premium. Many group plans will offer to sell you more insurance as you age, of course at higher rates. Your policy could become unaffordable at the time when you need it most.

Qualifying for benefits.
This one is simple. Most group plans will indicate that the insurance company’s physician will decide when you need care. With individual plans, Your doctor certifies that you will need care. Which would you prefer.

These are but a few of the areas to be aware of when choosing a Long Term Care Policy.

For more information contact Walt Ptashnik @ 407-886-2023 or toll free at 1-866-783-8257