Atlanta, Georgia (PRWEB) September 05, 2013
It can be tempting to buy the long term care insurance plan offered at work: it’s convenient and sounds like a sensible idea, especially in midst of all the advertisement. Buyers may want to think twice, though, says long term care insurance marketplace LTC Tree. Examination of the latest policies and premiums shows that group plans typically aren’t the best deal on price or benefits.
Group plans often cause people to receive less benefits for more money, explains LTC Tree founder Darrick Wilkins, and even worse, puts them in an unstable rate class. While they may seem like an easy way to choose a policy, group plans usually aren’t the most worthwhile option.
Compared to group plans, individual long term care insurance policies are a better value in almost every way. The major hole in group plans is an inevitable part of the process: it isn’t that the rates are intentionally high. The flaw in the policies lies in the structure of enrollment.
LTC Tree’s Analytical Department compared five of the major group plans and found:
Couples’ premiums with good health were an average of 36.12% less than group plans.
Individuals’ premiums with good health were an average of 15.49% less than group plans.
Employers typically offer group plans to encourage their employees to plan for retirement and old age, a respectable intent. However, because the insurance provider allows open enrollment of policyholders, they are forced to accept all kinds of health types: smokers, people who are obese, have diabetes, or even cancer. For people in good health, this is bad news.
The open enrollment groups healthy people into the same rate class as the high risk people. While their good health would normally get them a discount with an individual plan, with the group plan, they a
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