Group vs individual long-termcare insurance-Which is the better deal?
With the rising need for long-term careinsurance as a part of the package, while making their retirement plans, employers have been coming up with varied lucrative group policies for their employees. But due to sheer bad luck, people are more attracted towards individual policies rather than group ones without antivenin-depth understanding of the both. Long-term care insurance has gained its popularity in recent times as a smart investment move towards the future. From hybrid to shared varied options are available to a person willing to take up the policy. Now, how does one avail it is the choice to be made after careful consideration of premium, benefits as well as inflation protection etc? Now be it a group policy or an individual one, both have an equal number of pros and cons on the road ahead. One side it is said that the more people subscribe to the benefit, the lower is the premium for the group while on other side is the belief that there is a thin chance that our employer would be looking for the best interest of the employee while purchasing the insurance. With these thoughts, there is a huge debate whether group policy or individual policy is better.
Let's dig deep into the differences between the group as well as individual long-term care insurance
Group vs Individual:
The most benefited people from group policies are the people with bad health conditions. For a healthy individual, an individual policy seems the best choice as it is tougher for medical issues. In case of group policies, no medical underwriting is required for the benefits. Alongside giving better coverage in case of sickness,policies under group offer lucrative discounts for the consumers. Usually on an average of 20-30% discount when couples sign up for long-term care insurance on a shared basis. However, group plan does not guarantee the protection of one's assets, unlike individual policies. In case of group policies, one can avail select set of benefits and there is no contribution by the employer, unlike individual which has the provision of 100 percent of the benefits offered. The rate is higher as compared to an individual for maintaining the fixed cost of installing and maintain the plan. Also one has the flexibility option to convert to the individual policy when one leaves the group one is apart.
If a person is healthy enough, the individual policy seems a better choice as group plans do not provide much of deals. Usually, group plans come with the illusions being cheaper when compared. From being lower cost, inflation protection and with partnership programmes have the option to guarantee asset protection, an individual policy has it all. Doesn’t this seem an obvious choice? Last but not the least an individual policy would override group policy as the final choice.
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