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Understand LTC Features

Our link Comparing Long-Term Care Insurance Policies will help you understand what to look for when comparing LTC proposals.


Long-Term care is a variety of services that includes medical and non-medical care to people who have a chronic illness or disability. Long-term care helps meet health or personal needs. Most long-term care is to assist people with support services such as activities of daily living like dressing, bathing, and using the bathroom. Long-term care can be provided at home, in the community, in assisted living or in nursing homes. It is important to remember that you may need long-term care at any age.

Why would an employer want to offer long-term care insurance (LTCI) as a group benefit for its employees?  When an employer "sponsors" an LTCI plan, the company is not required to contribute toward the employee's premium, but sponsorship does have its advantages.

It is worth noting some of reasons for sponsoring these policies:

  • Some employers want to offer a new executive benefit to reward the loyalty of key staff by subsidizing or even paying the entire annual premium for LTCI.
  •  An employer may not wish his/her employees to have to endure a traumatic and time-consuming experience which will expose assets acquired over a lifetime to rapid drawdown.
  • Just knowing that an elderly parent in a distant city is covered by a long-term care policy can ease that employee's anxiety and enable him/her to be more focused on work.
  • With many LTCI companies the underwriting standards may be relaxed, making it easier for employees to qualify for coverage at reasonable rates.
  • Many insurance companies offer LTCI policies to extended family members in addition to the employee and his/her spouse to include:
    • parents
    • grandparents
    • parents-in-law
    • adult children
    • brothers & sisters
    • step-parent
  • When an employer sponsors an LTCI plan, the premiums of each approved employee (a minimum of usually 3 to five must participate) receives a 5 percent discount on each policy. This is in addition to other premium discounts such as:

    *   spousal discounts of between 25% and 30% for each policy,
    *   multi-family member discount of usually 5% (minimum of 3 in the family)

Health Plans Online can untangle the complexity of terminology and numerous benefit options offered by insurance carriers to help you identify the best companies both in terms of financial ratings and value.  Through our broker partnerships we have access to the best Long-Term Care insurance companies in the country.