Frequently Asked Questions

Cost

General Questions

1. How much does Federal long term care insurance cost?
    
2. What are the premiums based on?
    
3. Does the Federal government contribute a portion of the cost of long term care insurance?
    
4. What is the benefit to purchasing this insurance if the Government doesn't contribute toward the cost of premiums?
    
5. I am retiring and am already enrolled in this Program. Will my premiums increase because I'm retiring?
    
6. I've found other policies in the private sector that are cheaper than yours. I thought this Program's premiums are supposed to be less expensive?

1. How much does Federal long term care insurance cost?

Use our premium calculator to determine the premiums for your age and the options you select. The calculator also gives you the ability to compare premiums or various options to help you to select the options that are best for you.

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2. What are the premiums based on?

Your premiums are based on your age when you buy the coverage (the younger you are when you buy, the lower the premiums, all else being equal.) Premiums vary based on the options you select and are based on your age on the date that Long Term Care Partners receives your application.

When you choose the automatic compound inflation option, your Daily Benefit Amount (DBA) and the remaining portion of your maximum lifetime benefit will automatically increase at a rate of 5% or 4% (depending on the percentage you choose) compounded annually with NO corresponding increase in your premium. When you choose the future purchase option for inflation protection, your premiums will increase as your benefits increase.

Premiums are the same for all purchasers of the same coverage at the same age -- employees, annuitants, and all the other eligible groups.

If you are approved for coverage under the Federal Program, we reserve the right to increase your premium in the future. However, we may only increase your premium if you are among a group of enrollees whose premium is determined to be inadequate. Your premium will not change because you get older or your health changes or for any other reason related solely to you. While the Group Policy is in effect, OPM must approve the change.

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3. Does the Federal government contribute a portion of the cost of long term care insurance?

No, by law there is no Government contribution. Enrollees are responsible for paying 100% of the cost. This is typical of private industry practice for this type of insurance.

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4. What is the benefit to purchasing this insurance if the Government doesn't contribute toward the cost of premiums?

One of the real advantages of the Federal Long Term Care Insurance Program is that it is an employer-sponsored product that OPM considers to be an important part of the Government's overall compensation package.

This means the policy must stay contemporary with the best policies offered by other employers. So you can count on OPM to keep abreast of changes in how long term care services are provided.

You can also feel confident that the OPM-selected Long Term Care Partners and John Hancock Life & Health Insurance Company as among the best in terms of customer service and financial strength and stability.

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5. I am retiring and am already enrolled in this Program. Will my premiums increase because I'm retiring?

No. Premiums are the same for all purchasers of the same coverage at the same age. Premiums do not increase just because you're retiring. For more information about what to do for premium payments when retiring, please see the FAQ about Paying for Coverage.

We reserve the right to increase your premium in the future. However, we may only increase your premium if you are among a group of enrollees whose premium is determined to be inadequate. Your premium will not change because you get older or your health changes or for any other reason related solely to you. While the Group Policy is in effect, OPM must approve the change.

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6. I've found other policies in the private sector that are cheaper than yours. I thought this Program's premiums are supposed to be less expensive?

It is extremely difficult to accurately compare the cost of two different plans. Even if they look similar in most respects, we have found that there are usually numerous differences between competing plans that can significantly affect their cost. Make sure that you are comparing the exact same benefits.

For instance, we know that some people have compared our rates for Automatic Compound Inflation with rates for ACI offered at 3%. Our program offers the ACI increase at 5% or 4%. Of course a plan with a 3% increase will be less expensive. That is not a comparable benefit.

It is true that for some people rates in the retail marketplace can be reduced by spousal and preferred health discounts. The Federal Program chose not to target discounts to select groups. Rather, our aim was to offer the lowest possible rates to ALL who qualify under the underwriting standards.

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