Tennessee Insurance Practice Exam 2025 – All-in-One Resource for Exam Success!

Group or voluntary long-term care policy premiums are typically less costly than individual long-term care coverage because group plans benefit from economies of scale. When an insurance provider offers a policy to a larger group of people, they can spread the risk across many policyholders, which generally results in lower premiums.

Additionally, with group policies, there are often less stringent underwriting guidelines, meaning that individuals with pre-existing conditions might still qualify at a favorable rate compared to seeking an individual policy. Employers may also subsidize part of the cost as an employee benefit, which further decreases the premium that employees have to pay.

This cost advantage makes group long-term care policies an attractive option for many. Individual coverage, on the other hand, may require higher premiums due to underwriting risk associated with each separate applicant, hence leading to the conclusion that group plans are more financially accessible.