Never miss any update

Subscribe to the Group LTC Benefits blog newsletter today to receive updates on the latest news from our carriers.

Your privacy is important to us. We have developed a Privacy Policy that covers how we collect, use, disclose, transfer, and store your information. 

Jun 12, 2018 • Zach Oates

Group Long-Term Care Insurance: What to Consider

Group Long-Term Care Insurance: What to Consider

Has it been a while since your company looked at offering group Long-Term Care (LTC) Insurance?


There have been some very positive changes in the marketplace recently and larger employers are starting to re-evaluate offering group LTC insurance to their employees.


Below are some items to consider as you look to offering a group LTC program.


Has your company offered group long-term care insurance before?

If your company has never offered a LTC program, this may be the perfect time to see if an employer sponsored program would be a good fit. With American’s living longer than in previous generations, LTC planning is now a staple within an employee’s retirement plan. One of the biggest threats to your employee’s retirement income is a long-term care event, which in 2017, cost between $47,934 - $97,455 annually (depending on the type of care received). The unfortunate reality is that many of your employees may not be financially prepared to handle a long-term care event – which is why LTC planning is so important. Also, insurance carriers look very favorably at companies who have never offered a program.  


Does your company have an existing group LTC insurance program?

Many employers today have an existing closed Prudential, CNA, or John Hancock group LTC program that was put in place in the early 2000’s. All of the insurance carriers listed are no longer accepting new applications -- leaving your employees and new hires without a long-term care insurance option. The general rule is if your company’s existing group long-term care insurance program is over 5 years old, it’s time to re-evaluate the marketplace to see which options are available. Offering a new LTC insurance program to replace your closed program will ensure that your existing employees and future new hires have a LTC planning option available.


Are there other employer groups implementing new programs?

The short answer is yes. If fact, according to a 2018 study conducted by Willis Towers Watson, companies who are offering employer sponsored LTC insurance could double to 33% by the year 2021. Today, more employees are looking to their employers for guidance around post-retirement planning and group LTC insurance is being offered as a complimentary piece to their financial wellness planning. 


Is offering a new LTC program hard?

Offering a new LTC program is easy and completely free to implement on a voluntary basis. However, partnering with the right consulting firm that specializes in long-term care insurance is important. Generally, your LTC firm of choice will conduct the following at no cost:

  • Analysis of the existing LTC program (if applicable)
  • Conduct a full marketplace RFP of all insurance carrier options and products
  • Recommend a carrier partner and provide a robust program launch strategy
  • Create a highly customized communication campaign
  • Handle all enrollment support activities (phone calls, email responses, live meetings/webinars, employee questions…etc.)
  • Provide ongoing LTC program support and education for new hires


What are the benefits to my employees?

There are many benefits to offering a group long-term care insurance program for your employees. For starters, offering an employer-sponsored program allows your employees to apply for coverage with a shortened application which has a much higher acceptance rate than coverage purchased on the individual marketplace. Also, your employees have access to discounted gender-neutral pricing. The general rule is employees who purchase coverage through an employer always get a better deal from an underwriting and pricing perspective than if they purchased coverage through a financial planner or agent.




Zach Oates

Written by Zach Oates

Zach Oates is the VP of Marketing and Strategy where he develops group long-term care insurance strategic communications and intelligent technology decision support. Zach has been instrumental in the development of the implementation and employee education platform.
  • LinkedIn