Nursing homes, assisted-living facilities and home care agencies are all services that many people need later on in life. Unfortunately, these services are not automatically covered under most basic insurance plans. Long term care insurance is designed to cover these types of services. Until recently, commercial insurance companies were the only ones who offered long term care insurance. The federal government, however, does offer long term insurance through its Federal Long Term Care Insurance Program (FLTCIP).
Features
Employees of the federal government and active duty members of the uniform forces are eligible for FLTCIP. As long as the applicant is 18 years of age, there is no cut off age limit for the program. Costs for the program are based on age and desired daily benefit in the event of plan payout. The plan is administrated through the U.S. Office of Personnel Management.
Theories/Speculation
The FLTCIP plan is considered by most members as the low cost alternative. The actual plan is provided by John Hancock Insurance. The entrance of the federal government in the long term care insurance industry has provided competition. This competition may lead to lower cost of commercial plans. Because of this, applicants in the federal plan may eventually find lower costs elsewhere.
New presidential administrations may also succeed in implementing universal healthcare. It has not yet been determined how long term care insurance will be incorporated into universal healthcare since it is still considered to be optional insurance by most of the cost. The need for nursing home, home care and assisted living services will increase as baby boomers continue to live longer.
Benefits
Long term care insurance plans offered by the federal government have the same level of coverage as most plans. In the event that traumatic events lead to a nursing home stay, consumers will know that the total cost of nursing home care doesn't rest completely on them. These plans also offer security to the spouses of government employees in similar situations.
Misconceptions
Pre existing conditions do not necessarily prevent applicants for getting an FLTCIP plan. In addition, conditions like Alzheimer's don't make an applicant exempt from federal long term care plans. Individuals will need to speak directly to a representative of the program in order to find out how specific conditions will affect an applicant's ability to get a plan.
Warning
The average cost of nursing home care is estimate at $40,000 a year for one person. Many people have depleted personal savings trying to cover the cost of long term care for themselves or loved ones. Without long term care insurance, families can lose the ability to maintain an acceptable standard of living.
Tags: term care, federal government, home care, nursing home, care insurance, long term