Party of one

Right now, there’s only one “true group” long-term care insurance carrier actively offering new business plans. So why would employers still look at LTCI as a vital retirement planning protection product? It’s because a product line initially designed for small groups—multi-life individual LTCI contracts—is now moving to the big time.

To understand why, it’s important to understand the history of LTCI offered to groups. Since the 1980s and 1990s, the majority of plans sold were of the “true group” variety. What do we mean by “true group?” A true group plan is one in which the insurance company issues a master policy to the employer, while each employee participant receives a certificate. This approach was used by companies such as Unum, MetLife, CNA, John Hancock, Prudential, Aetna and others. There were several advantages to this approach for carriers, benefit brokers and employers: