Group LTCi

 

Should long-term care insurance be part of an employee benefits program?

At a time when concerns about skyrocketing health care costs and uninsured risks continue to dominate the news, making the decision to include long-term care insurance in a benefits program could be more advantageous than ever. The potential benefits include:

  • An enhanced benefits program to help attract, retain and reward employees
  • Coverage discounts and possible employee eligibility for Simplified Underwriting*
  • Increased productivity for employees who become caregivers for covered family members
  • Potential tax benefits if a company chooses to contribute to premiums

*Where offered

The reasons for integrating long-term care insurance in a benefits program is more compelling than ever.

As health care costs continue to skyrocket, the perceived importance of employer-sponsored insurance benefits has never been greater. That’s why an ever-increasing number of companies, both large and small, are making the decision to assist their employees in acquiring long-term care insurance.

Long-term care insurance addresses needs a company health plan probably doesn’t cover.

Long-term care insurance is designed to help pay for an important class of services that are not covered by most health insurance policies: ongoing care associated with a chronic illness or disability. As a result, including this type of coverage in a benefits program can give your client’s company an important competitive advantage.

Long-term care insurance is one of the most requested voluntary benefits by employees in the United States.

Here are some of the important goals long-term care insurance can help achieve:

FOR THE COMPANY

  • A competitive edge in attracting and retaining employees— This coverage helps protect against potentially significant health care costs, so it can play an important role in encouraging prospective employees to seek out a company and existing employees to stay on. As an added incentive, a plan can include a Key Employee Carve-Out with a limited pay option that presents key employees with a paid-up long-term care insurance policy upon retirement.
  • Increased productivity for employees who become caregivers— Employer-sponsored long-term care insurance program can make (where offered) discounted coverage available to the extended families of employees (including spouses or partners, parents, grandparents, siblings, aunts, uncles, and in-laws). As a result, it may help reduce the burden, both financial and emotional, that can fall on employees who are called upon to assist in caring for loved ones covered under an employer-sponsored plan.
  • Potential tax benefits— Employers have the option to pay all or some of an employee’s policy premiums. The business may be able to deduct the cost of these premiums using pretax dollars, and the total premium paid by the business may not be included in the employee’s taxable income. (see your tax advisor)

FOR COVERED INDIVIDUALS

  • Saves money with built-in coverage discounts— Coverage discounts are available for employees, spouses or partners, and other family members through your employer sponsored program.

                      

 

  • May help employees and their Spouses or Partners qualify for coverage— When they choose an employer-sponsored long-term care insurance plan, employees may become eligible for simplified underwriting (where offered) that can make it easier to qualify for coverage.
  • Provides individual coverage that is portable— The employee is the owner of the policy, so policyholders can remain covered when they retire or if they change jobs.
  • Helps pay for long-term care without exhausting income and personal savings— With costs in New York (for example) now averaging $153,000* per year for a Skilled Nursing Facility and $35* per hour for visits by a home health aide, it’s easy for policyholders to envision how long-term care insurance can play an important role in helping them remain financially secure. *Genworth 2021 Cost Of Care Survey.
  • Helps protect retirement income— Since policyholders can receive assistance paying for covered long-term care services, they are better able to avoid liquidating assets they’ll need to depend on in the future for retirement income.
  • Helps retain control of care decisions that can affect the quality of life— With a long-term care insurance policy to help cover expenses, policyholders will have greater freedom to choose the type of care they receive, either at home or in a care facility.
  • Helps meet needs without becoming a burden to others— Having a long-term care insurance policy can reduce the chance a covered individual will need to ask other family members for financial support or assistance with daily needs related to a chronic illness or disability.
  • Helps individuals stay at home while receiving care— With a long-term care insurance policy, a covered individual can receive benefits to help pay for caregivers who provide in-home services.