Before we start talking about the federal Long Term Care Program we have to address what long-term care insurance is and why someone might want it. In the past, when someone got older and was unable to take care of themselves, their children often stepped in and cared for their parents. In modern times, this solution might still be applicable but there are many situations where it is not. Someone may not have kids or may not want to have to rely on their kids. Or sometimes, the children aren’t financially prepared to take on this responsibility.
This is why we now have nursing homes, assisted living facilities, respite, and home care options. The one downside of these resources is that they tend to be very expensive, especially if you need them for a long period of time. Long-term care insurance was invented to help cover these costs if someone ended up in a situation where they needed them.
Long-term care insurance isn’t perfect for everyone, but it can be a very viable solution for those who need it.
For the federal program, the insurance is provided by LTC Partners, which is a subsidiary of the John Hancock insurance company.
If an employee applies for this program right when they are hired, they are subject to only a very short underwriting process. Current employees and retirees are subject to a longer underwriting process, but it still isn’t that extensive. The questions will ask about general lifestyle and health.
Unlike other benefits, this benefit is completely portable. This means that if you were to leave the federal government and find a job somewhere else, you’d be able to take your policy with you. Your coverage amount will stay the same as well as your premiums.
In general, especially as you get older, long-term care insurance can be very expensive. You will have to look over the different coverage amounts compared to the average costs of long term care in your area to see what makes sense for you. You will have to weigh the pros and cons between the cost and the benefits of this insurance. Just like any other insurance, it comes down to a question of risk. How much risk do you want to take on as an individual and is it worth paying a monthly premium to transfer that risk to an insurance company? Some people never end up using the coverage while others need it extensively.
I firmly believe that everyone should have a long-term care plan. This doesn’t always have to be formal insurance, but everyone should know what they’re planning to do if they find themselves in the situation where they can’t care for themselves. By doing this planning ahead of time, it can save you and your family members a lot of money and struggle.
