As a State of Alaska employee who is enrolled in the Public Employee Retirement System (PERS), the Teachers’ Retirement System (TRS), or the judicial retirement system, planning for your long-term care needs is crucial. One of the benefits available to you when filing retirement paperwork is the option to sign up for long-term care coverage for yourself and your spouse. The State of Alaska offers three long-term care coverage options: Silver, Gold, and Platinum.
Long-Term Care Coverage Options:
Silver Long-Term Care Coverage:
The Silver option provides basic long-term care coverage without any inflation protection. While this option may offer initial affordability in terms of premiums, it is important to consider the effects of inflation on long-term care costs. Without inflation protection, the coverage amount may not keep pace with the rising costs of long-term care services in the future. However, for some individuals, the Silver option may be a suitable choice depending on their financial situation and risk tolerance.
Gold Long-Term Care Coverage:
The Gold option provides a step up from the Silver option by offering 5% simple inflation protection. This means that the coverage amount will increase by 5% annually to account for inflation. With inflation protection, the Gold option provides more security as it helps hedge against the rising costs of long-term care services. While premiums for the Gold option may be higher than the Silver option, the added inflation protection can offer valuable peace of mind knowing that your coverage is keeping pace with inflation.
Platinum Long-Term Care Coverage:
The Platinum option is the most comprehensive long-term care coverage option available to State of Alaska employees. It offers 5% compound inflation protection, which means that the coverage amount not only increases annually by 5% but also compounds over time. This provides substantial protection against the impact of inflation on long-term care costs, ensuring that your coverage amount grows significantly over the years. While the premiums for the Platinum option may be higher than the Silver and Gold options, the enhanced inflation protection makes it an attractive choice for those seeking robust long-term care coverage.
Which Plan is Best for Me?
When choosing a long-term care coverage option, it is important to consider your age at the time of application, as premiums are typically based on age. Younger individuals may benefit from lower premiums but should carefully evaluate the level of coverage and inflation protection offered by each option. Older individuals may face higher premiums but may prioritize comprehensive coverage and inflation protection to safeguard against rising long-term care costs in the future.
If you are in the process of filling out your State of Alaska retirement paperwork and have questions about the long-term care coverage options available to you, our team at SBS Retirement Consultants is here to help. We understand the importance of planning for long-term care needs and can provide guidance on selecting the right coverage option based on your individual circumstances.
Making an Informed Choice
Long-term care coverage is an essential component of retirement planning, especially for State of Alaska employees enrolled in PERS, TRS, or the judicial retirement system. By understanding the three long-term care coverage options – Silver, Gold, and Platinum – available to you, you can make an informed decision that aligns with your financial goals and long-term care needs. If you have any questions or need assistance with choosing the right long-term care coverage option, do not hesitate to reach out to us. Planning for your long-term care needs today will provide you with peace of mind and financial security for the future.
