Why are group long-term care policies usually more expensive than individual long-term care policies?

In a previous article, I made the statement:

“You can probably get better benefits for less premium if you purchase your own long-term care policy rather than enrolling in a group long-term care policy.”

There are 2 main reasons:

  1. Individually-purchased long-term care policies offer large discounts for couples.
  2. Individualy-purchased long-term care policies offer large preferred health discounts.

Long-term care policies you can buy on your own usually have “couples discounts”–sometimes as high as 40%.

These discounts are usually available to domestic partners, not just married couples.  These discounts can even be available if one spouse is uninsurable.

People who buy a long-term care policy on their own can often qualify for preferred health discounts as high as 33%, even if they have some health problems.

Most group long-term care policies charge everyone in the group the same rate, regardless of health history.  With most group long-term care policies, someone who is in great health pays the same rates as someone who has severe diabetes, severe arthritis, or a history of a stroke.

With a long-term care policy you buy on your own, you can qualify for the “Preferred Health Discount” even if you have health problems like:

  • high blood pressure
  • anxiety
  • high cholesterol
  • thyroid disorders
  • skin cancer
  • osteopenia
  • mild arthritis
  • asthma
  • enlarged prostate
  • carpal tunnel
  • GERD
  • glaucoma
  • heart murmur
  • herniated disc
  • Irritable Bowel Syndrome (IBS)
  • Crohn’s disease
  • macular degeneration
  • mitral valve prolapse
  • kidney stones
  • benign polyps
  • scoliosis
  • TMJ
  • familial tremors, and
  • ulcers


To learn more read:

The Most Common Mistake:  Group long-term care insurance often costs more and offers less!

Confusing the two types of Inflation Benefit




About Scott A. Olson

Scott A. Olson, is the author of “The Guidebook for Making Long-Term Care Insurance Easier.” He is a licensed insurance agent and has specialized in long-term care insurance since 1995. He is licensed to sell long-term care insurance in over 40 states. Scott was born and raised in New Jersey and attended Rutgers University. Scott was a caregiver for a close relative for two years. That personal experience has made him acutely aware of how to help his clients design and choose a long-term care policy that will benefit them when they need it the most. Scott and his wife Carolyn live in Redlands, California. Scott and Carolyn have four sons.