Employee/Group Long Term Care Insurance
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.
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.
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.
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.
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)
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)].
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)].
This is not tax advice. Please check with your CPA for all tax-related issues.