Group LTC Benefits Blog

Group Long-Term Care Underwriting: SI is the new GI

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Spread the word, there’s a new normal in underwriting group long-term care – it’s known as simplified issue (SI).  The days of underwriting a group’s long-term care plan with pure guaranteed issue (GI) rates are a part of the history books.  In fact, there remains only one “true group” long-term care insurance carrier actively offering new business but it’s not 100% GI underwriting. 

Today carriers are offering policies called “multi-life” which are individual contracts offered a group chassis. They look and feel like a group policy with group discounts, unisex rates, and underwriting concessions; however each covered person or insured is the policyholder instead of the employer.  

Multi-life LTCI is the new group LTCI, with that said, most advisors/brokers are still culturally conditioned to GI in the group market. But is SI really that bad?  Here’s a snapshot from a multi-life carrier’s SI application.  The number of health questions are abbreviated and unlike an individual product, SI eligible applicants do not require a paramed, blood/urine samples, phone interviews or medical records.

SI_App-1

Most employees without a chronic medical condition will qualify for coverage.  Even employees with current health problems could be eligible whereas they may not qualify with full medical underwriting if they applied for retail individual coverage.  Multi-life policies are also fully portable.  Once the policy’s in-force, the employee can continue their coverage throughout their career and well into retirement. 

Despite the industry’s past challenges, the consciousness and understanding for LTC planning is growing.  Employers are gaining interest in offering an LTCI solution especially as they are exposed to owning the financial wellness and retirement readiness of their employees. 

This need is also recognized by the carriers.  With market stabilization, several carriers are currently evaluating their entrance into the multi-life space.  So if you thought group LTC was dead, it’s not –it’s just different.

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Related articles:

Corporate LTCI Sales Present a Big Opportunity
http://www.benefitspro.com/2015/05/12/selling-long-term-care

The New Normal for Group Long-Term Care Insurance: Multi-Life
http://www.voluntarybenefitsmagazine.com/article-detail.html?issue=issue-53&article=the-new-normal-for-group-long-term-care-insurance-multi-life

Topics: Employee Benefits

Written by Trina Brown

Trina Brown is a business development lead for employee and executive long-term care solutions at LTCI Partners, LLC, one of the nation’s largest Long-Term Care Insurance (LTCI) retail and wholesale brokerage enterprises. Trina graduated from Florida State University, where she received a BS in International Finance. After graduation, Trina remained countryside and accepted a position to launch Capital Administrative Services, Inc. (CAS), a new third party administrator for employee benefits out of Tallahassee, Florida, and served as Executive Director and Board Vice President until 2012. During Trina’s tenure with CAS she procured voluntary benefits for over 110,000 state employees and helped secure CAS as a leader for employee benefits and individual life insurance planning in the State of Florida. Trina’s determination to enhance the awareness for long-term care planning resulted from her dual role where she served as Director of Long-Term Care for Capital’s sales agency and worked in tandem with Capital’s Regional Vice President’s to develop and implement retail product and sales training for agents. Now for over a decade, Trina has had the pleasure of helping brokers, advisors and consumers find a long-term care solution and she understands the challenges in starting a dialogue about this type of planning. Whether serving consumers directly, or supporting professionals who do, Trina is committed to providing LTC awareness and peace of mind so that more Americans have a plan in place to protect their family’s well-being, retirement income and comfortable lifestyle in those “Golden Years.” Trina is a member of the National Association of Insurance and Financial Advisors (NAIFA) and shares the passion to protect the business of insurance and financial services. Trina served as former President Elect of the NAIFA Tallahassee and current First Vice President and Membership Chair for NAIFA Chicago, where she also lives downtown in the River North area.

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