Can You Qualify For Group Discounts Of 5 - to - 10% ? (Maybe even 20%)
If you are looking for long-term care insurance for your business, for key executives and managers, for all employees or for your group or association members, you may be able to qualify for special discounts that are made available by insurers. On this webpage, we provide a general overview and address the most commonly asked questions. Use this merely as a general guide because it varies and, as with all things, is subject to change.
To obtain specific information for your particular situation, you will need to connect with a knowledgeable long-term care insurance group specialist who is appointed with all the major leading long-term care insurers. Complete our free request for Quote form and your information will be shared with just one group expert designated by the Association. They will compare costs, health requirements and, of course, all discounts you may be eligible to receive.
An important thing to keep in mind: While discounts are always valuable, for many groups, simplified or modified health underwriting can be even more important -- especially when there are some individuals with health conditions. We will address this separately within the Employer section of our website.
What premium discounts are available for employers or groups
The information provided here refers to individual long-term care insurance policies bundled together in what is commonly called a 'multi-life' arrangement. These are the very same policy you would buy as a single person or a couple. The advantage you have as a group is the possible option of a discount and / or some health underwriting simplification.
The discount actually varies and while we use from 5 to 10 percent, which is the most common discount, the discount could be as much as 20 percent if you meet certain criteria.
Some insurers will offer the discount only if the employer is contributing to the premium or paying all of the cost. As we noted above each insurer has stipulations for offering a discount; something a group long-term care insurance specialist can address.
What offsets the discount? There must be some difference if we are paying a lower cost.
Some insurers might reduce commissions paid to the agent or broker but many do not. The offset is simply the group enrollment economies that result from a group case such as a single list-bill and full participation among eligible individuals when the employer pays some or all of the premium cost.
What criteria must be met to qualify for the group or employer discount?
The criteria varies widely. The ability to qualify for discounts and simplified issue underwriting often relate to the eligible population (size) of the employer, or whether the employer makes contributions to a minimum number of individuals.
If a voluntary plan is offered, is the discount guaranteed even if the requirements are not met?
As noted, insurers typically have a minimum participation rate for simplified issue (or modified guaranteed issue plans), that are often directly related to available discounts. If the minimums are not met, the discount is not available.
In terms of participation in order to qualify for the discount, what is the current definition of participation?Information as of January 2013 and subject to change.
The following is provided to give you a general overview. We again stress the importance of working with a knowledgeable group long-term care insurance specialist. LifeSecure, has the lowest current minimum requirement of 3 eligible employees when the employer pays the premium. This is for a limited benefit amount and is applicable for participants up to age 68 who are actively at work full-time employees (defined as over 20 hours per week).
Genworth offers a 5% discount when there is a 100 perecent Employer Contribution for between 7 and 499 lives; a 5% discount voluntary if there are over 500 lives. Transamerica offers a 10% discount for what are referred to as voluntary plans (meaning no employer contribution is required). They require a minimum of 10 to 15 covered lives (plan participants) which depending on level of health underwriting. MedAmerica FlexCare will provide a 10% discount with minimum participation of 10 covered lives.
One insurer offers a 15% discount when the Employer pays some of premium (though participation requirements must be met). One insurer will even offer a 20% discount when the employer pays 100% of the premium (again participation requirements are stipulated).
While discounts vary, so do plan benefits and costs -- as well as health requirements and that's why we advocate working with a knowledgeable specialist who can assess your group and recommend the best and the best second option for your group. It would be a mistake to base your decision on discounts alone.
Are there any instances where the discount can be negotiable?
Not usually when you are talking about using individual long-term care insurance policies in a multi-life setting. With True Group long-term care insurance which can be an option for larger groups, everything can be discussed.
Why Work With A Knowledgeable Long-Term care Insurance Group Specialist
First, if you ever have questions, feel free to call the Association offices and our staff will answer your questions. Calling directly to insurers will get you referred to an insurance agent and you won't know if he or she simply favors that one company's solution, or whether they are appointed to sell policies from all insurers. That is an important distinction.
To request a free, no-obligation long term care insurance quote for your group from a designated professional who will compare all insurers for your group, please click here. Your information will be shared with just one designated group professional selected by the Association.