Long-term care insurance is a product that has been available for over 30 years, but only a small percentage of those who say they need coverage have a plan. One reason could be that a LTC insurance plan is not available through their employer, despite the desire of employees to have this option. In fact, according to a 2017 survey of 1,200 adults conducted by Genworth Financial, 4 out of 5 Americans want the option of buying long term care insurance at work, and 68% of survey respondents would prefer to purchase it through an employer as opposed to a financial professional. There are many advantages to an employee buying LTC insurance through the employer:
1. Premium Discounts: Insurers typically discount premiums compared to what is available in the individual market. They can do this because offering LTC insurance to a large number of buyers lowers their customer acquisition cost. The discount can be extended to spouses and often extended family members.
2. Underwriting: Another advantage for employees is streamlined underwriting. Most long-term care products include a health evaluation or full medical underwriting, which is important to keep the block of business stable and combat adverse selection. However, many carriers in the group market will simplify the underwriting process for employees during the open enrollment period, as long as there’s a robust communication plan in place.
3. Unisex rate structure: Unlike products in the individual market, employer standalone long-term care plans offer the additional advantage of gender-neutral premium rates. Because they tend to live longer and need more long-term care, woman pay more for LTC in the individual marketplace, but not in the employer market!
4. Employee buying experience: Finally, an employee buying LTC insurance through an employer group may have a better buying experience than someone buying in the individual marketplace. Robust education and awareness campaigns can help employees make thoughtful decisions. The product offering has been vetted by the employer, and an employee may avoid a high-pressure sales approach. Finally, these products offer convenient online enrollment.
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Ready to add Group LTC Insurance to your business/clients’ benefits offering? Call us at 877-949-4582 x7 or visit us at https://www.ltcipartners.com/groupltc