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Terrebonne Parish finance committee approves optional whole‑life policy with long‑term‑care rider for employees
Summary
The committee accepted a vendor proposal to offer an optional group whole‑life policy with a long‑term‑care rider effective Oct. 1, 2026. The policy includes a guaranteed‑issue amount, a rider that pays 6% of face value monthly for up to 36 months if two ADLs are lost, portability and a restoration benefit; premiums are paid by employees.
The Terrebonne Parish School Board Finance Committee on June 23 approved an optional group whole‑life insurance policy with a long‑term‑care (LTC) rider, to be offered to employees through Alfred and Associates and Standard, with an effective date of Oct. 1, 2026. Mr. Ford moved the motion; Mr. Voisin seconded, and members raised no objections.
The proposal was introduced by Mr. Curtis and explained by Katie of Alfred and Associates, who said the product combines a guarantee‑issue whole‑life policy with a LTC rider so employees who cannot qualify medically for individual life policies can still access coverage. “The product serves as a dual purpose,” Katie said. “You’ll have people be able to use both of those benefits.”
Under the plan presented, an LTC benefit begins if an insured loses two of six activities of daily living (bathing, dressing, toileting, continence, transferring and eating). The LTC rider pays 6% of the policy face value per month for up to 36 months; for example, Katie said a $100,000 face value would generate about $6,000 per month, producing roughly three times the face value over the term used. Katie also emphasized portability and a restoration feature that returns the death benefit after LTC payments stop.
Katie said the policy pays benefits to the insured, allowing the insured to compensate family or friends providing care rather than requiring payment only to certified providers. “This policy actually pays out to the policy holder and you could pay your daughter‑in‑law or your cousin or anyone within your family or friend to take care of you,” she said, describing that as important for the region.
Board members asked detailed questions about access and oversight. Mr. Ford asked whether the program includes safeguards to prevent abuse; Katie said certified caregivers or facilities must periodically verify care and that the program requires check‑ins to confirm ongoing need. Dr. Cloutier asked who determines loss of ADLs; Katie said a physician or nurse practitioner would make that determination and that the six ADLs are medically defined.
Other plan details discussed: a guarantee‑issue amount for employees of $200,000 and a $75,000 guarantee‑issue level for spouses; portability so employees who leave may keep the coverage; a simplified underwriting window for ages 70–80; and a cash‑value component that Katie said carried a guaranteed crediting in the product illustration of about 4–4.5%. Sample monthly premiums cited by the presenter included about $38.21 per month for a 30‑year‑old buying $50,000 of coverage and $65.54 per month for a 40‑year‑old at that level.
Committee members emphasized communication and education before enrollment. The vendor said the plan would be rolled out with education in September and that the initial open eligibility window in September would be required for employees to sign up without medical underwriting; late entrants would need to provide evidence of insurability. Several members noted retirees may be eligible but that affordability for older participants is uncertain.
The committee approved the measure. Next steps are vendor outreach and employee education through September, with coverage effective Oct. 1 for those who enroll during the initial window.
