The Federal Long Term Care Insurance Program is jointly underwritten and administered by John Hancock Life Insurance Company, Boston, Mass., and Metropolitan Life Insurance Company, New York, which formed Long Term Care Partners, LLC., to run the program.
The government isnt subsidizing the coverage; its simply giving John Hancock and Met Life the exclusive rights to jointly market the program for seven years. There is full underwriting for everyone except current federal employees and their spouses, who are subject to “abbreviated” underwriting.
There are three optional benefit periods: three years, five years, and unlimited benefits. Daily benefit options range from $50 to $300 a day. Participants can choose a plan with or without inflation protection. Open enrollment began July 1 and continues to December 31.
The plan runs an excellent Web site, www.ltcfeds.com, with a rate calculator and frequently asked questions about LTCI. It also has a lot of good statistics you can use when communicating with clients.
Reproduced from National Underwriter Life & Health/Financial Services Edition, August 5, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.