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Questions About Federal Long-Term Care Insurance?

Get answers to frequently asked questions about the Federal Long Term Care Insurance Program (FLTCIP).

Federal Long-Term Care Insurance

The Federal Long Term Care Insurance Program (FLTCIP) is a voluntary program available to federal civilians, uniformed service members, and certain qualified family members. This employer-sponsored program currently provides coverage for more than 267,000 enrollees.

The FLTCIP is sponsored by the U.S. Office of Personnel Management (OPM), insured by John Hancock Life & Health Insurance Company, and administered by Long Term Care Partners, LLC (LTCP).

 

What Is Long-Term Care?

Long-term care is different from medical care, because it generally helps you to live as you live now instead of improving or correcting medical problems. People often think of long-term care as strictly nursing home care. Long-term care services actually may include help with activities of daily living, home care, respite care, hospice care or adult day care. This care maybe given in your own home, an adult day care facility, assisted living facility, nursing home or hospice facility.

 

To learn more about the federal long-term care program, download and read the two brochures below.

 

Federal Long Term Care Insurance Program (FLTCIP) 3.0 plan.

Federal Long Term Care Insurance Program Book One

 

How does the federal long-term care insurance differ from other long-term care policies?

The federal long-term care policy falls under the Traditional LTCi category. Traditional LTC pays a benefit when the insured cannot perform 2 out of 6 activities of daily living.

Traditional, standalone long-term care policies offer coverage only for long-term care in your home or in a specialized facility. There is no cash value in traditional LTC policies, therefore nothing goes to a beneficiary from your LTC policy upon your death. However, there may be joint options available where two spouses may share the same pool of money.

Traditional LTC are still popular, but in recent years long-term care has an innovative new choice. Hybrid policies, sometimes called combo or linked-benefit products, bundle long-term care insurance with either life insurance or an annuity.

That means if you need long-term care, the policy covers your expenses, but if you don’t need it, you’ve got other options. Depending on the type of hybrid policy you select, it will either pay your loved ones a death benefit, like a life insurance policy, or it guarantees you an income stream during retirement, like an annuity.

 

 

 

 

Can I be turned down for LTC?

The short answer is yes, regardless of the company and policy you apply for. All long-term care policies are medically underwritten and there is a possibility that you may not qualify for coverage.

We recommend filling out a confidential medical history form so we can call the underwriters who can help narrow down your best option.

 

How do I get a quote for a federal long-term policy?

Go to https://www.ltcfeds.com/guided-planner

Once you have a quote, contact us and we will shop other policies so you can compare your options and make a well-informed decision to what LTC policy is best for you.

 

What are my options if I am uninsurable or can’t afford the premiums?

Your only other option is to self-insure and pay for future LTC expenses out of pocket. Self-insuring for LTC can be tricky and is an area in which you should work with a professional. Market risk, safety, taxes, liquidity and inflation must all be considered when planning for LTC expenses.