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Long Term Care Group - Purchasing Long Term Care Group Insurance

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This is the first generation of aging adults living fuller, more active lifestyles, and living longer. Many families are living further apart due to job demands and lifestyle choices. Often extended families do not live in the same state, much less city or neighborhood, as families used to do. And as the baby boomers, which will soon comprise up to 50 percent of the population, are aging, they are experiencing conditions that limit their ability to function independently and will require long term care, often in a facility.

Long Term Care

The purpose of long term care is to enable aging persons to keep their independence, yet receive required living assistance support in a nursing home, assisted living facility, or at home. Long term care does not just make provisions for medical treatment; it also provides assistance in daily living tasks such as help getting prepared for the day. Often, nurses or health care professionals assist the person in their home, allowing maximum supportive independence.

According to the Bureau of Labor Statistics, the average cost for home health care could run as high as $20,000 per year, and nursing home costs average $52,000 annually for a semi-private room. It is projected that by 2030 those costs for nursing home semi-private rooms could be as high as $190,000.

Long Term Care Insurance Policies

Long term care insurance policies can protect from financial drain on a family should the need arise for care of a loved-one. Many long term care needs are not covered by health insurance, and as many families live far apart, there is often no one who can provide supportive care on a daily basis.

The insurance company issuing the long term care insurance policy pays a pre-specified daily benefit for the care in an assisted living facility, nursing home, or for care provided in the insured’s home. A dollar per day amount is specified in the long term care policy for allowable care.

Group Long Term Care Insurance

Many employers are realizing that it assists their employees when they are offered long term care insurance for themselves and their elderly dependents. It adds to the benefits package, reduces absenteeism, improves morale, and contributes to productivity as well as company loyalty. Long term care is now considered to be a federally qualified plan which has certain guarantees that protect consumers and define coverage levels.

Most group long term insurance plans are fully covered by the employee and employers do not contribute to the coverage. But like other group insurance plans, employees who select group long term care insurance coverage can obtain the coverage at reduced costs. Group long term care insurance policies often do not have any medical requirements that have to be met, and are portable, meaning that if the insured individual leaves the company (or group) they can keep the coverage. They may also allow family members of the employee to apply for the long term care coverage.

The average person that needs long term care will spend up to 3 years at home, and then may have to enter a nursing facility. Most people will prefer remaining at home. Factoring the rising cost of health care along with inflation, the two main components that should be in a long term care policy are coverage for home care and protection against inflation.

Long Term Group Insurance Coverage

While most policies pay a pre-determined amount per day some plans will allow the insured to select dollar levels of coverage. Payments are made for either a number of years or a maximum dollar amount. Payments will differ for nursing home care versus home health care.

A person that has health issues may find that enrolling in a long term care group insurance policy is a good deal, since there is no medical underwriting required if enrolling during the open enrollment period.
Premiums for long term care insurance will vary, depending on coverage levels selected, as well as maximum dollar amounts of coverage. Policies can provide coverage for the individual purchasing the long term care insurance, as well as for their spouse, parents, or even children.

As with all insurance coverage it is good to research options before selecting a plan, even with group long term care insurance. Depending on the age of the insured along with medical needs, a complete review of long term care insurance policies is always beneficial.

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