Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Life Health > Health Insurance > Health Insurance

Employers seek group LTCI alternatives

Your article was successfully shared with the contacts you provided.

Employer-sponsored long-term care insurance (LTCI) plans may have to change along with the LTCI industry.

Jesse Slome, executive director of the American Association for Long Term Care Insurance (AALTCI), has given that advice in an AALTCI commentary on the state of the group LTCI market.

In the past, several carriers were competing vigorously for group LTCI accounts of all sizes.

Today, because of the effects of low interest rates on LTCI carrier investment earnings, and the effects of gloomy actuarial analyses on carrier executive morale, only one carrier is still offering true group LTC programs to large employers.

Many large employers prefer to offer true group programs, because true group programs often offer more relaxed underwriting standards than individual programs or multilife programs.

A typical individual program requires applicants to go through a full underwriting process.

A multilife program, which involves the sale of large numbers of individual policies at the worksite, might involve full underwriting or might involve streamlined underwriting. Several carriers are offering multilife program discounts of 5 percent to 15 percent, Slome said.

Employers without access to true group LTCI coverage can cope with the shift by dropping any mention of LTCI coverage, recommending that workers seek individual coverage, or adding multilife programs, Slome said.

Offering a multilife plan may be the best option, under the circumstances, because workers’ need for help with long-term care planning is clearly as great as ever, Slome said.

See also:


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.