Long Term Care Insurance Program for Employees
Help your employees protect their retirement saving with long term care insurance.
For most employers, a tax-advantaged retirement plan like a 401(k) is as a cornerstone employee benefit. It’s not uncommon for employees to accumulate significant retirement portfolios. Unfortunately, decades of savings can be devastated with the onset of a long term care event. Long term care is the largest unfunded financial risk in retirement and employers and employees alike are beginning to realize it is a missing element in the employee safety net.
As employees increasingly turn to their employers for financial guidance, it has become important to reach employees while they are young and healthy. Considering insurance at a young and healthy age reduces the chance of being declined because of health problems and allows them to incorporate long term care planning into their financial plan while protection is still affordable.
Many carriers now offer employer-sponsored long term care insurance programs with premium discounts and simplified medical underwriting that can be implemented without cost to employers. Since health insurance increases are often passed to employees, many companies are offering the benefits of sponsored long term care on a voluntary basis.
Long Term Care Insurance Executive Carve Out Plan
In addition to providing premium discounts and underwriting concessions to their employees without cost, employers can choose to pay the premiums for owners and key executives on a discriminatory basis with an Executive Carv Out. An Executive Carve Out rewards a specific group of executives by purchasing a long term care insurance policy for each member in the group. By using an accelerated pay option, the employer can project the cost of the long term care insurance and determine when the premium payments will stop. When the executive
retires the business can present him or her with a paid up long-term care insurance policy.
Company-paid coverage is tax-deductible and not counted as income to the employee, and when it comes time to collect benefits, theyâ€™re received by policyholders tax-free.
Why Choose the LTC411 Employer Worksite Program For Your Company?
To be honest, long term care insurance can be very confusing. Not only are there many different programs and plan designs, but each of these has their own unique benefits, advantages and disadvantages. Therefore it’s imperative that your employees get expert advice and direction in making a sound financial decision that will effect them for years to come.