The Federal Long Term Care Insurance Program
If you are a Federal or U.S. Postal Service employee or annuitant, a member or retired member of the Uniformed Services or their spouse (or other qualified relative), then the U.S. Federal Government demonstrates it’s full endorsement of long term care insurance by offering you the opportunity to buy long term care insurance at a group rate.
Note: This rate may or may not be more affordable than non-Federal Program, non-group coverage. It is always wise to get expert assistance before buying an LTCI policy.
Under the Federal Long Term Care Insurance Program (FLTCIP), the Government works with insurers that are selected and approved by a Government agency. Together, they design long-term care insurance policies for individuals who qualify.
To learn the full details about this program, see www.ltcfeds.com. But read on before you do.
The Federal website clearly states on its home page that:
"More than 70% of us who live to retirement age will need long term care at some time in our lives…"
This can be a sobering fact for citizens who have been unaware of the financial risk involved with Long Term Care, in addition to the 24-hour caregiving burden placed upon the caring family.
In addition, most people are unaware that Long Term Care Insurance helps cover expenses for services for which most health plans and Medicare provide only limited (if any) coverage.
In fact, health plans (including the FEHB Program, TRICARE,and TRICARE for Life) typically do not cover "ongoing chronic care" such as an extended stay in an assisted living facility or nursing home or a continuing need for a home health aide to help you bathe, eat, toilet, get in and out of bed, etc.. And while Medicare pays very limited amounts under limited conditions for recuperative, convalescent, skilled care following at least a 3-day hospital stay, Medicare does not cover most long term care services which assist people with the activities of daily living over a long period of time. It’s no wonder that people "in the know" are turning to Long Term Care Insurance to protect themselves and their families.
For those who qualify for FLTCIP, the Federal Long Term Care Insurance Program, it’s important to note the following…
Pros and Cons of the Federal Long Term Care Insurance Program
FLTCIP Pros:
- Pre-Existing Health Conditions – As any group plant, Primary Insureds in poorer health will be accepted for coverage under the Federal program, however their family members must pass underwriting standards. Family members in poor health may not be accepted.
- No Excusion for Acts of War – For those in the military, this may be a positive benefit.
FLTCIP Cons:
- Expensive – Premium rates are higher when unhealthy people can enroll alongside healthy individuals. People in generally good health can get competitive coverage and pay less with a private plan.
- Restricted Eligibility – Only those in the Federal family may apply.
- Family Health Restriction – Family members are screened for health and are not accepted automatically.
- No Spousal Discount – Marrieds who apply together do not enjoy discounted rates.
- No Shared Benefit – Policy benefits cannot be blended between the couple.
- No Survivorship Benefit – Survivor’s policy is not "paid up" if their insured spouse dies.
The Federal Program may be changing it’s insurance partners in 2009. If the companies change, the policy benefits may likely change, as well. If you think you may be interested in buy an LTCI policy from one of the Federal Program insurance companies, do yourself a favor and speak with a professional LTCI broker who does not work for the Government or the Federal Program’s insurance companies’ representatives.
In conclusion: If you enjoy general good health, then a private, individual, custom-designed plan may be better for you and less costly. To get unbiased assistance, access the free Buyer’s Advisory Service for personal guidance, quote comparisons and objective, unbiased, decision assistance.
If you would like more informationa about Long Term Care Insurance in the Carlsbad CA area, visit
www.sandiegoltc.com.
