Long-term Care Insurance
What is the Long-term Care Insurance Program All About?
As you get older, it's more likely that you or a dependent will need help with everyday tasks such as bathing, dressing, and eating. 70% of people 65 or older can expect to use some form of long-term care during their lives.
Medicaid and Medicare pay for many services, but they are not designed to cover long-term care. Long-term care insurance fills the gap by paying for care that you need when you cannot safely care for yourself. That care may be received at home, in the community, or in a nursing home.
Why Would I Want Long-term Care Insurance?
Long-term care insurance is designed to protect your retirement assets. Without long-term care insurance you would have to pay for needed care out of your savings. For most of us, that would mean tapping into retirement plans, IRAs, or other savings.
The cost of long-term care services today is around $79,935 a year* and is projected to be $340,000 a year in 30 years.** Medicare, health insurance, and disability insurance do not cover long-term care services.
How Does It Work?
It’s like a specialized bank account (referred to as a “Benefit Bank”). You choose an amount between $100,000 and $1 million for your Benefit Bank. (Policy benefits above $400,000 require full underwriting.) Your Monthly Benefit Access Limit (1%, 2% or 3%) represents the dollar benefit amount available on a monthly basis for your long-term care needs. It is calculated as a percentage of your Benefit Bank.
The University of Minnesota has a long-term care insurance program with LifeSecure Insurance Company, a wholly owned subsidiary of Blue Cross Blue Shield of Michigan, the largest BCBS organization in the United States.
Eligibility and Enrollment
You need to be actively at work for a minimum of 20 hours per week to be eligible for long-term care insurance.
- Newly hired employees between the ages of 18 to 65 have 90 days from their date of hire to apply for coverage with simplified underwriting.
- Spouses must show evidence of being actively at work on a full-time basis*** to be eligible for simplified underwriting.
- If you or your spouse enroll after 90 days, you will have to complete full medical underwriting to get coverage.
- Newly hired employees between the ages of 66 to 79 can apply for coverage with full underwriting.
- Current employees between the ages of 18 to 79 can also apply with full underwriting.
Eligible family members including parents, grandparents, in-laws, adult children (18 and over), and siblings can apply with full underwriting.
Enrollees buy their own policies. Premiums are based on the enrollee's age, not on the age of the employee.
- For specific coverage and premium details, refer to the Plan-at-a-Glance (pdf) document.
- Learn more about long-term care insurance with the Frequently Asked Questions
- Call Life Secure's University of Minnesota Long-Term Care enrollment line at 855-549-8911 to talk one-on-one with an enrollment counselor who can answer your questions and help you enroll
- Visit the LifeSecure enrollment website at www.uofmnltc.com
Contact Information for Previous Plans
John Hancock: 800-968-6555 or 800-482-0022
CNA Insurance: 866-308-0253
* U.S. Department of Health and Human Services: www.longtermcare.gov
** Genworth 2013 Cost of Care Survey
*** Actively at work on a full-time basis means the applicant is between ages 18-65, is a W2 employee who is regularly working 20 or more hours per week at their usual place of employment and has not been absent from work for longer than five days during the 30 days prior to signing the application. LifeSecure requires a check stub to verify employment for the spouse.