Some 270,000 Federal employees and others in related federal positions possess long-term care insurance protection as part of the Federal Long-Term Care Insurance Plan.  Agents affiliated with the  American Association for Long-Term Care Insurance conducted a recent teleconference to explore pros and cons of the plan.

"The Federal LTC plan is by far the nation's largest group plan and there are some excellent benefits and reasons to select this plan for your coverage," explains Jesse Slome, director of the national long-term care insurance association.  "At the same time, there are alternative options that may make better sense and are worth considering."

Slome cited cost as a major point of comparison.  "A 55-year old couple each purchasing a benefit of $219,000 that will increase annually, will initially pay $346 monthly for their coverage," Slome points out.  "Basically equal coverage from a leading highly rated mutual insurance company would cost slightly more."

One of the concerns pointed out was the risk of future rate increases.  "The federal long-term care insurance program is a negotiated contract that comes up for renewal every few years," Slome notes.  "When the contract renews, prior policyholders tend to face some significant rate increases. "

Aren't all policyholders subject to similar future rate increases was a question raised.  "Not necessarily," Slome shared.  "In fact, private long-term care insurance policies now being offered have been priced using factors that make future rate increases very unlikely.  For example, the Federal plan charges the same for men as it does for women despite the fact that two-thirds of all claims are paid for care needed by women.   Sooner or later the insurer behind the Federal plan will have to make up for the low initial premiums," Slome predicts.

Slome urged agents who work in areas with large concentrations of Federal employees to take the time to really learn about the Federal LTC plan so they could advise their prospects.  "For married couples, the Federal plan does not offer spousal discounts, good health discounts or the shared care option which allows spouses to share their benefits," Some added.  "These could be quite desirable along with policies that offer a partial cash benefit, something the Federal plan doesn't."

The American Association for Long-Term Care Insurance advocates for the importance of long-term care planning and helps consumers connect with knowledgeable professionals who are independent advisors.

Consumers looking for local long-term care insurance agents or cost comparisons should visit the Association's website at www.aaltci.org or can call the organization's national headquarters at 818-597-3227.