Feb 5th, 2020
Federal Long-Term Care Insurance Options
2020 Update: The Federal Plan is still available, but there may be lower cost options on the private market. Especially if you are healthy... read on:
To get ballpark figures of how much Long Term Care Insurance Costs, check out our Online Calculator.
Federal Employees have access to a Long Term Care program called the FLTCP 2.0. This plan provides a simple Long Term Care plan for Federal employees and their spouses. These plans offer comparable coverage to what is available from a host of private insurers. Sometimes the Federal Long Term Care plan’s prices are better, often they are worse.
Unique Features (consider when comparing):
The “Fed” plan offers 3%, 4%, and 5% Compound inflation protection, while most private insurers only offer 5% compound increase options. If you’re under 70 and have longevity in your family history, going with anything less than 5% Compound is simply a mathematical mistake.
The Federal LTC Plan’s “Sweet Spot”
First, a few introspective questions for you:
Are you healthy?
- Do you regularly take any medications?
- Are your height/weight in good proportion?
- Any history of cancer, arthritis, or pain management?
- Are you married?
Good Health Discount
If you’re healthy, you may qualify for a 10-20% discount with private plans. The Federal LTC Plan does not have a discount for good health. If you’re healthy, you’re being grouped in with all Federal employees and are probably paying more for coverage.
Marital / Partner Discount
If you’re married or have a partner, you qualify for discounts in the 30-40% range with private plans. The Federal LTC Plan does not have a discount for applying with a spouse! Missing out on a 40% discount is major.
Single, Standard Health (Not Great Health) Favored
Despite statistics that indicate married couples and those with good health tend to make less severe claims, the Federal plan favors single, less healthy clients when it comes to pricing.
The items listed above are factors in evaluating the Federal LTC plan versus private insurance plans. A first step should be to request a comparison Long Term Care Insurance quote from a trusted advisor or online broker. You want honest feedback on how the plans really compare, not bias and a sales pitch.
Sample Federal Long Term Care Insurance Comparisons
Comparing private "market" insurance plans vs the Federal Long Term Care (FLTCIP) Insurance plan, here are some actual examples. The individual plans listed were from Genworth (A), MassMutual (A++), and Mutual of Omaha (A+) versus actual quotes from the Federal plan on an annualized basis. (You can only pay the Fed plan either monthly or semi-weekly.)
* Note: Savings are annual. Over the course of the policy, this could lead to tens of thousands of dollars for these real-world clients we analyzed.
Find Out How Your Rates Compare: Federal vs Private Long Term Care Insurance
Request a quote from us and mention you are a Federal Employee. We will provide an apples-to-apples comparison and help you compare your options. Sometimes, the Fed plan is your best option. We will disclose this.