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Individual personal policies allow you much more flexibility
in plan design and options available than the Federal Long Term
Care Insurance Program. Only Federal and US Postal Service employees,
active members of the uniformed services, DC government employees
hired before October 1, 1987, and employees of the DC Courts
are eligible for the federal long term care insurance plans.
Qualified relatives and certain retired employees are also eligible.
The following are differences between the federal
long term care insurance plans and typical individual long term
care insurance plans: |
government vs personal long term care
| |
Government Long Term Care Insurance |
Personal Long Term Care Insurance Plans |
| Rate Classes |
Standard Only |
Preferred Plus, Preferred, Standard |
| Spousal Discounts |
None |
Yes (up to 70% discount for spouse)* |
| Discount for two unrelated people living in same household |
No |
Yes (up to 70% discount for 2nd person)* |
| Discount for two family members living together |
No |
Yes (up to 70% for 2nd person)* |
| Benefit Period Duration |
3 yrs, 5 yrs, lifetime |
3 yrs, 4 yrs, 5 yrs, 6 yrs, lifetime |
| Elimination Period Options |
30 and 90 days |
0, 30, 90, and 180 days |
| Are caregivers excluded from the informal care benefit if
they live with the insured? |
Yes |
No |
| Home Health Care Benefit (Percentage of nursing home benefit) |
75% Only |
100% |
| Inflation Options Available |
5% compound, Purchase Options |
3% compound, 5% compound, 5% simple |
| Can you pay in full or over a fixed number of years? |
No |
Yes, 10 or 20-year, as well as paid up at age 65. |
| Indemnity Benefit |
No |
Yes |
As you can see from the above chart, there are some major differences
between an individually owned long term care insurance policy and
one purchased through the government LTC program. Many insurance
companies offer serious discounts when you apply with your spouse
(or anybody else living in your home with you). The benefits payable
can be custom tailored to your desires as well. Typically a personally
owned long term care insurance policy will provide more coverage,
and allow you to receive long term care wherever you need instead
of having the government policy dictate what you can and cannot
do when you need care.
Feel free to request a long term care
quote from our agency today. We will contact you to
help you design a custom plan shortly.
* - This comparison is based on the most recent information provided
to us at the time the document was prepared. It is not intended
to be complete or to compare all contract provisions. Policy provisions
and language may vary by state.
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