Employer Advantages: Long-Term Care Insurance Coverage
For small businesses, there are a number of key benefits when you purchase long-term care insurance on a 'group' basis. There can be significant tax benefits. There can be savings benefits since you may be able to qualify for a group discount on the very same policy you would purchase on an individual basis. If your group meets certain criteria, you may be eligible for more simplified health underwriting.
For larger businesses, offering long-term care insurance as a workplace benefit can be an integral part of your strategy to recruit and retain the best talent, contain costs, and enhance employee productivity. Offered as a voluntary benefit, this protection can provide significant and potentially life-changing benefits for your employees without cost to the company.
For employees, long-term care insurance can:
Obtain discounts only available when purchased on a group basis. Take advantage of simplified health underwriting also only available on a group basis.
Help secure retirement savings by protecting against the high long term care cost.
Allow individuals to retain independence in decisions concerning care rather than relying on family members or government assistance.
Prepare for the unexpected by providing insurance not covered by other benefits.
For employers, group long-term care insurance can:
Enhance benefit packages by providing a voluntary benefit that offers coverage not found in medical or disability insurance.
Increase worker productivity; by giving employees access to resources that will help them manage long-term care situations.
Deduct contributions to long-term care premiums as a business expense.
The following additional information describes the key benefits of offering group long-term care insurance:
Premium discounts
Discounts for employer-sponsored plans are available to employees, spouses and extended family members. Plainly stated, insurers offer a discount on the very same policy you would purchase on an individual basis (applies to multi-life long-term care insurance offerings).
Health underwriting concessions
Insurers require individuals meet health standards that can make it harder for some to qualify for long-term care insurance protection. When offered on a group basis, the insurer simplified medical underwriting can be available for employees and can be extended to spouses even. This will vary quite considerably from one insurer to another -- especially when the employer group is smaller.
Employee recruitment and retention
Offering long-term care insurance to employees is a great way to position your company as one that cares for its employees. So many adults have been impacted by a family member or seen a friend face financial and lifestyle sacrifices when long-term care assistance became necessary. That's why employees rank long-term care insurance as important a voluntary benefit as group life or disability insurance.
Greater workplace productivity
Millions of American workers have to take time off work to provide care for a spouse or an older family member. Many spend time at work making calls related to finding caregivers, coordinating schedules. It's time consuming. It's stressful.
Making long-term care insurance available not just to employees but to extended family members can help address this problem. It's not just good for the employees and their families; it's good business.
Favorable tax treatment
Federal legislation includes tax incentives for employers and employees who purchase long-term care insurance. Premiums paid on tax qualified long-term care policies, whether by an employee or employer, are tax deductible on Federal tax returns, and insurance benefits, when collected by a policyholder, are tax free. The Association does not provide tax advice but your businesses tax experts or a knowledgeable long term care insurance professional can provide the information you need.
Ready To Request Information For Your Business or Group
To request a free, no-obligation benchmark long term care insurance quote with sample rates for your group, please click here. Your information will be shared with just one designated group professional selected by the Association.