FLTCIP Isn't Taking New Applications - What Federal Employees Are Looking at Instead

For years, FLTCIP was the default long-term-care insurance conversation for federal employees in this metro, in part because it was easy to find through payroll and benefits materials. With new applications suspended through at least December 2026, federal employees and retirees who don't already have coverage are looking at the same private market everyone else has always had access to.

Traditional standalone long-term-care insurance

Private insurers still sell standalone long-term-care policies, medically underwritten, covering a defined daily or monthly benefit for a set number of years. Premiums are typically higher than FLTCIP's historical rates and rise with age at application, so timing matters - and underwriting can decline applicants with certain pre-existing conditions.

Hybrid life insurance / long-term-care policies

Hybrid policies combine a life insurance death benefit with a long-term-care rider, so premiums aren't 'lost' if long-term care is never needed - the policy still pays a death benefit. These have become a popular alternative precisely because of the 'use it or lose it' objection some people had to standalone LTC insurance. They generally require a larger upfront premium or a shorter payment period than standalone policies.

Annuity-based long-term-care riders

Some fixed or fixed-indexed annuities offer a long-term-care rider that increases the payout if the annuitant needs qualifying care. This can be a reasonable fit for a federal retiree who already has TSP or other savings they'd like to convert into guaranteed income with a care-cost cushion attached.

What to compare before buying anything

• The daily or monthly benefit amount versus this metro's actual cost of care - see current assisted living and memory care pricing in the facility directory.
• The elimination period (how long you pay out of pocket before benefits start).
• Inflation protection - a benefit set today needs to keep pace with rising care costs over the years before you'd actually use it.
• Whether the carrier has a track record of premium increases on in-force policies.