Filed Under:Health Insurance, Ltci

Employers seek group LTCI alternatives

The group LTCI market has been sailing through stormy seas. (AP Photo/Jim Dietz)
The group LTCI market has been sailing through stormy seas. (AP Photo/Jim Dietz)

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:

Featured Video

Most Recent Videos

Behind the scenes with Vicki Gunvalson [VIDEO]


In this exclusive interview, Vicki Gunvalson shares how she built a $15 million a year annuity business by planning for...

Regulator: Market may need to reinvent LTCI


Cioppa says Maine's governor wants to spur the creation of better products.

Dementia: It's more than Alzheimer's


An association calls for policymakers to remember lesser-known neurodegenerative conditions.

Protesters Disrupt WellPoint Annual Meeting


Hecklers call for more disclosures of information about political contributions.

Related resources

More Resources


Power your business with up-to-the-minute insurance news, analysis, and best practices from LifeHealthPro Daily eNewsletter – FREE.

Power your business with LifeHealthPro Daily eNewsletter – FREE.

Enter a valid email address.
Nichole Morford

Nichole Morford
Managing Editor

Thank you for subscribing to LifeHealthPro Daily!

Check Out More eNewsletters Now! Close

Advertisement. Closing in 15 seconds.