Can I name AFLAC as my Long-Term Care Insurance provider through payroll deduction?
Tuesday, September 7th, 2010 at
4:17 am
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Sure you can, but please be sure to look and compare the policy’s and make sure you are getting what you are looking for. The small print on LTC can be confusing at times and with new legislation coming down the pike, it would be in your best interest to look closely at what you are wanting to purchase. Hope this makes sense. Good Luck.
If your company allows payroll dedution through AFLAC and they have no restrictions on the type policy you purchase, then yes you can use AFLAC for your LTC. You should check with your human resources office, they will be able to tell you. I would compare other benefits before purchasing. Make sure you are not giving up something else to get a 0 waiting period.
It’s possible most of the time
Try contacting Primerica Financial Services. They will give you a complimentary Financial Needs Analysis. Their LTC provider is Genworth, and there is a waiting period, but I know that it can be waived, means you start getting paid right. The FNA will show you how much and what kind of insurance you need based on the circumstances that are unique to you. Check out their website, or give them a call, they are in the phone book. Good luck
John Hancock is a top-quality insurer. You are lucky to have it available to you through work. With this kind of insurance, you want to opt for quality because if you need to get the benefits, you don’t need a hassle with your insurer.
With a group plan, you get a low premium cost but you also need to take the paramenters that your HR department set up. A waiting period (called "elimination period") of 90 days is by far the most common. What it means is that you pay all the expenses for the first 90 days and then the insurance kicks in. Should you be worried about that 90 days?
First, you should know that the cost of a semi-private room in a nursing home is about $150 per day. Care at home or in an assisted living facility is less. So, your maximum financial exposure is $150/day X 90 days = $13,500. You are statistically unlikely to use your coverage, so if you have over $13,500 in the bank, don’t worry about it.
Second, you should consider that there are two ways to come to need Long Term Care – suddenly (such as might happen in an accident) or gradually (such as might happen as a person ages and loses personal capabilities). If YOU came to need LTC suddenly, you might need to pay out that $13,500. But, if you come to need LTC gradually, you will not need to pay out nearly that much. Many plans from John Hancock provide for care at home. If your gradually deteriorating condition allows for the initial care at home if you pay for home care for just one hour in a day in a week, that day counts as seven toward satisfying your elimination period. Since 90 days is about 13 weeks, you might end up paying just 13 hours of care (less than $300 in total) to satisfy your 90-day elimination period.
So, it is not as bad as you might have thought.
I would highly recommend you keep the John Hancock plan. And, I have no vested interest in John Hancock.
Best wishes.