Group Long Term Care Insurance: Providing Peace of Mind


 Group Long Term Care Insurance: Providing Peace of Mind

Group Long Term Care Insurance is much like Group Life Insurance in that it relieves the insured and their family of the burden of caring for themselves. This type of insurance pays for long-term care services such as assisted living, nursing homes, home health aides or even adult day care.

Group LTC Insurance plans are far more affordable than purchasing an individual policy. In addition to being less expensive, group coverage can include other members that may be excluded from an individual policy due to age or health condition such as a spouse who has Alzheimer’s disease or a disabled child with special needs.

Group LTC Insurance is more affordable because a group policy can provide one, two, or even three coverage options – joint and survivor, individual, or type of coverage. These options can include a combination of LTC services such as care in a nursing home plus home health care services.

Benefits other than the obvious cost savings are not limited to the insured and family members. A group policy may include benefits such as medical, dental and prescription coverage, as well as long-term care benefits. 'Group' in Group LTC Insurance means that each member shares equally in cost of claims so they pay less per policy year for their insurance coverage than they would pay on an individual plan.

Discounts are available to employers or associations that purchase policies for their employees. Depending on the group policy, the maximum coverage may be more than $60,000 annually for a couple. An added benefit of Group LTC is that the members do not lose any benefits if they use their insurance benefits for themselves or other family members. This means they can provide care to a spouse or other dependent who needs it while still providing care for their parents and grandparents who need assistance in their own homes.

The most affordable Group LTC Insurance is provided through an employer’s employee benefit program, which will include a maximum amount of coverage at one time and one location per employee covered. If a spouse or children are covered, they will still be covered at their jobs. Employer Group LTC Plans are also available as stand-alone policies.

Benefits that may be included in Group LTC Insurance include: 

A group policy provides many benefits more than most individual policies offer including the following:

Group LTC insurance can pay for only those specific services which a member uses in their homes. Benefits such as nursing, custodial care, and home health aide services are generally not covered under a group policy. These types of insurance provide benefits to an individual only if he or she uses these services in his or her home.

In the United States, there are two widely used types of group LTC insurance policies. In the first, the plan provides coverage in a facility such as a nursing home or assisted living center. In this case, the individual pays for all services that he or she uses at that particular location and does not have to share with others. The second type of plan covers care at home. This option allows one person to provide care to all other members under that policy as long as they use those services at their homes.

There are two ways for an individual to get their own group policy:

LTC policies are risk-based so the rates depend on what the LTC needs will be in the future. The limitations that the insurer requires the insured to follow are also taken into consideration. If an individual has had just a few health issues, insurance companies will offer lower premiums than if there have been many health issues. The premiums depend on how well the policy will be able to provide for future needs.

LTC insurance policies are risk-based because they include a set amount of coverage with a maximum of $60,000 annually for care in a nursing home or assisted living facility. This amount is fixed and may not change over time regardless of inflation and medical costs, especially due to advances in medical care. If the policy is not fixed, it can be more beneficial to the insured. If a person needs more care in the future, then he or she will pay more for coverage. If the care needed is less than was originally covered, then that person will not pay as much for coverage.

The benefit of this policy is that it allows an individual to control any changes in his or her LTC insurance plan if they decide to upgrade or change their care plan when they are older. The downside is that these policies can cost significantly more than fixed rate policies.

Individual LTC insurance provides benefits for specific situations that may arise as time goes on. With this type of policy, the individual will receive a maximum amount of $60,000 annually if they use a facility such as a nursing home or assisted living center, and they will pay less than $60,000 annually if they decide to receive care at home.

Some long term care insurance plans include Medicare benefits under certain conditions. If you do not have basic Medicare coverage, your LTC insurance policy may provide additional protection against high out-of-pocket expenses. If you purchase an individual policy, then your LTC Insurance Policy will pay for care when you are eligible for Medicare (or Medicaid). If you have family members who need low cost home health care, then this is another benefit that may be included in your LTC policy.

Because of the unique way in which a group insurance program operates, it can provide coverage for one or multiple persons under this individual policy. A group LTC insurance policy may be provided by an employer or community association as long as the insured member(s) receive the insurance coverage at no cost and fully paid for by their employer or association. The main goal of a Group Long Term Care Insurance Policy is to allow members to maintain their benefits if they use them for other family members.

Group LTC policies are available as individual policies, which offers more value than a group policy. These plans offer maximum annual coverage of $60,000 per individual for nursing home care and up to $144,000 for home care. This plan is also known as an 'indian blanket policy' because it covers both the insured and his or her spouse.

A Final Expense Insurance Policy is available as an individual or group policy which allows individuals to choose a small amount of burial dollars in addition to the fixed LTC insurance coverage amounts. This optional benefit provides an amount that will help pay for funeral expenses if something unexpected occurs to prevent an individual from paying for those expenses or creating a specific fund.


Long term care is not an easy task to take care of at any age. Long Term Care is a very expensive and time-consuming expense that may not be covered by your individual policy. Although you have individual LTC insurance policies, they are not going to cover the expenses that you may need. Group LTC Insurance is meant to help individuals pay for those expenses that are not covered by the original policy holder's plan. Where you end up in your later years can depend on many factors, so it is important to make sure that you are insured for the things that will happen in your future. With Group LTC Insurance, you can control what happens with your benefits if something unfortunate were to happen.

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