Right now, there's only one “true group” long-term careinsurance carrier actively offering new business plans. Sowhy would employers still look at LTCI as a vital retirementplanning protection product? It's because a product line initiallydesigned for small groups—multi-life individual LTCI contracts—isnow moving to the big time.

To understand why, it's important to understand the history ofLTCI offered to groups. Since the 1980s and 1990s, themajority of plans sold were of the “true group”variety. What do we mean by “true group?” A true groupplan is one in which the insurance company issues a master policyto the employer, while each employee participant receives acertificate. This approach was used by companies such asUnum, MetLife, CNA, John Hancock, Prudential, Aetna and others.There were several advantages to this approach for carriers,benefit brokers and employers:

• Plans were based on the situs state of the employer'sheadquarters so all employees could typically have the same planregardless of which state they resided in.
• Employees could have simplified enrollment, often withguaranteed issue, compared to individual policies.
• Plans and contract language could be customized for employersbased on unique needs.

Most of these group plans were designed for groups of more than1,000 eligible lives.

 In the meantime, on a different floor of the carrierhome office, teams were designing small group long-termcare  plans using individual contracts. Oftenthese plans offered a premium discount and some type ofunderwriting concession—although never guaranteed issue like groupproducts. Although these products were designed for thesmall group market, some LTC specialists started to use them forlarger groups.