Group Long Term Care Insurance
Group Long Term Care Insurance is another new benefit in the group insurance market. Long Term Care (LTC) Insurance is designed to help customers preserve their assets and lifestyle in the event of an extended illness or injury that requires costly long-term care.
This coverage pays benefits for the loss of two or more "Activities of Daily Living" or for severe cognitive impairment. Benefits begin after an elimination period of 30, 60, or 90 days and last from 2 years up to "lifetime." Benefits can be increased with an inflation benefit which automatically adds a certain percentage to your daily or monthly benefit amount.
An indemnity model, which is the best option available, pays the full benefit amount selected, regardless of the expenses incurred. A record of expenses is not required, and the money can be used to meet whatever needs the individual chooses. A reimbursement model, which is more common, pays only the amount that is billed by the provider(s). This plan will require you to submit expenses (receipts or invoices) in order to receive your benefits. Group Long Term Care Insurance allows employers to tailor their plans to cover spouses and/or parents, or to include retirees and other eligible family members. This product delivers a flexible combination of employer-funded and employee-purchased coverage, to meet a broad range of employer budgets.