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Employee/Group Long Term Care Insurance

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VOLUNTARY LONG TERM CARE FOR EMPLOYEES

 

Offering long term care as an optional benefit is a gift to the employees; the offering brings awareness and provides opportunity for education.

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  • Most employees don’t know that a minimal LTC policy in MA can protect their home from Medicaid Lien

  • Most employees don’t know that a partnership policy in most of the other states can protect the amount of the LTC benefit from Medicaid spend down.

  • It is not a surprise to most employees when people live into old age and some may already be stressed by the caring of an aging parent. 

 

Long term care insurance when offered to the employees can also be purchased by immediate family members with the same discount.  

  • Minimum of 5 employees

  • Minimum of 3 to be approved

  • 5% employee discount

  • Options for single pay, 10 pay and lifetime pay premiums

  • Shared policy options for couples

  • Discounts for couples

  • Employees may use their HSA’s or MSA’s to fund LTC premiums up to age limits.

 

SIMPLIFIED ISSUE LONG TERM CARE INSURANCE

  • More lenient underwriting

  • Application can be completed online

  • If all answers are no, application approved based on application within 2 days.

  • Dependent upon the yes answers, a phone interview and/or medical records will be required.

  • Couples discount – 10%

  • Easy to understand – 4 primary plan options with 3 inflation options for each.

  • May be payroll deducted or automated billing to individuals bank or credit card.

  • 10-100 EMPLOYEES

    • Requires a minimum of $25/month contribution or a base plan.

    • 5% additional discount for the employee

         

GREATER THAN 100 EMPLOYEES

  • No contribution required, but 5% discount if employer contributes

  • Company contributions are tax-deductible and not counted towards employee’s income.

  • Benefits received tax-free by employee.

 

C-CORPORTIONS

Premium payments are fully (100%) deductible as a reasonable and necessary business expense- similar to traditional health and accident insurance premiums [IRC Sec. 213(d)1]. This can apply to the owners, their spouses and dependents, and all employees.

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Employer-paid long-term care insurance is excludable from the employee's gross income [IRC Sec. 106(2)] and the benefits received are tax-free.

 

PARTNERSHIPS, S-CORPORATIONS and LIMITED LIABILITY CORPORATIONS (LLC)

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Premium payments purchased for a partner or owner (2%+ shareholder) are subject to the same rules mentioned above for self-employed [IRC Sec. 162(1)].

 

Premium payments for non-partner/non-owner or less than 2% shareholder-employee are 100% deductible as a reasonable and necessary business expense -- similar to traditional health and accident insurance premiums [IRC Sec. 162(2)].

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Employer-paid long-term care insurance is excludable from the employee's gross income and the benefits received are tax-free [IRC Sec. 106(2)].

 

Unlike many other employer provided benefits, employers are allowed to “carve” out and create a class of select employees to offer long term care insurance

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  • Enhances recruitment and retention of talent needed for key executives

  • Fully portable business insurance for the covered employees and/or their families

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