Q: I’m a 58-year-old federal employee, and I am considering signing up for the federal long-term care insurance program. Is it a good deal? A: It’s always worthwhile to take a look at your options if your employer offers long-term care insurance. Although employers do not subsidize premiums the way they shoulder some of the cost of traditional health insurance, you may benefit from a group policy discount.
As you near retirement, it’s a good time to think about how you would pay for the potentially astronomical cost of long-term care, which is not covered by Medicare or traditional health insurance. Long-term care can be delivered in your home, in a community-based day program, in an assisted living facility or in a nursing home.
| June 24 deadline looms |
| For the first time since 2002 the Federal Long Term Care Insurance Program is offering open enrollment with abbreviated underwriting — meaning people can sign up for coverage with fewer health questions than they usually need to answer. Federal employees, their spouses and active-duty service members are eligible. |
At age 58, you’re in the sweet spot for purchasing long-term care coverage. People in their late 50s tend to have more disposable income, thanks to higher salaries and decreased family obligations when the kids leave home. And they are still young enough to buy long-term care insurance at affordable prices. Premiums are usually much higher if you wait until your mid to late sixties or older to buy insurance, and you take the risk that you might develop a medical condition that makes you uninsurable.
Now is a particularly good time to look into the Federal Long Term Care Insurance Program, the nation’s largest group plan (federal employees and their spouses as well as active-duty service members are also eligible). The federal plan is offering an open-enrollment period until June 24 that enables people to sign up for coverage with fewer health questions than they usually need to answer (called “abbreviated underwriting” in insurance-speak).
This is the program’s first open-enrollment period with simplified underwriting since 2002. But you still won’t qualify for coverage if you have a chronic health condition such as Alzheimer’s disease, multiple sclerosis, Parkinson’s or other specified medical conditions. And you may need to provide additional medical information in certain circumstances (if, for example, you use crutches and/or a multi-prong cane).
If you’re in good health, however, it’s worthwhile to compare the cost of the federal program to the cost of buying the insurance on your own. (The same advice applies to nonfederal workers who have access to long-term care through their employers.) Many group policies don’t offer spousal discounts or discounts for good health, so you might find a better deal with an individual long-term care policy. To find a long-term care expert, visit the website of the American Association for Long-Term Care Insurance (aaltci.org).
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