Long-term care, in essence, is an insurance option for extended care that is not covered by government entities, such as Medicare or social security. If a client is concerned about being unable to perform daily activities in the future, due to external factors like injury, illness, or frailty, then a long-term care policy is the best plan to ensure their wellbeing.

Long-term care is by no means a rare event. Studies show that nearly a quarter of men and women (50% men, 75% women) exceeding the age of 65 will need this specialized type of coverage. Needless to say, it is highly in demand. Furthermore, senior citizens are not the only group of individuals seeking long-term care. Almost half (40%) of long-term care claims were filed by working individuals, some far from retirement (i.e. 20’s to 40’s) and some nearing retirement (late 50′, early 60’s).

When compared to other types of insurance coverage, long-term care premiums are on the higher end of the cost spectrum. Highly populated states, such as California, carry long-term care costs reaching as high as $75,000 per year (roughly $200/day) with a current inflation rate of 5.5%. If not covered by an LTCi policy, funding of coverage typically comes from several different sources, including personal savings and retirement accounts, family members, or from Medicaid.

Long-term care is the largest unfunded liability in the country. This risk is due to the 70 million+ baby boomers who are in or nearing their golden years, and the fact that less than 10% have long-term care policies. Employee care-giving costs, in total, average above 20 billion dollars per year, and are increasing as time goes on.

The biggest impact on LTC employers is the loss of productivity. Studies show that more than 60% of caregivers are already working in the field on average of 36+ hours a week. This has a major impact on the caregivers themselves, such as increased stress, lost wages, lack of productivity, and more. The cost of working such extraneous hours can be difficult for the employer, and many strategies (i.e. promotions or relocations) don’t appeal to the caregiver, often times refusing them entirely.

Employers are now offering LTCi benefits to employees for a variety of reasons:

– It can help preserve an employees’ productivity and focus on work versus caring for a loved one.

– LTC can be offered to employees’ immediate family members, such as spouses, children or parents.

– Employers can buy it for themselves and thus secure their financial health and future care.

– As an additional method of securing employees retirement funds from being diminished.

– Employers LTCi offerings include discounted plans, simplified underwriting and carve-outs.

– LTCi policy premiums are 100% tax deductible.

– It’s appeal has the power to recruit the best employees possible and keep them working for the company.

LTCi is a non-inflationary family benefit with rates set at employees’ age at enrollment, which do not increase each year. In addition, LTCi teaches an alternative approach to financial planning and wealth preservation. It provides financial security and minimizes the risk of going broke in retirement so long as the employee starts carrying LTC earlier on.

Furthermore, LTCi advantages for the employer come from a significant amount of support from the government. For example, government financial programs recognize the substantial unfunded liability if the niche market (baby boomers) don’t purchase LTCi. What this means is that LTCi premiums are tax deductible, which is an extra advantage to both employers and employees.

Offering long-term care insurance is a duel employer-employee benefit. Of the most powerful outcomes of introducing long-term care is that it makes employees conscientious about preserving the lifestyle that they’ve become accustomed to and their future wealth in general. In addition, underwriting proceedings are simplified, which benefits all parts of the organization, from the underwriters themselves to claims adjusters to brokers alike, therefore increasing efficiency in an unparalleled manner

In approaching a multi life LTCi, begin by protecting the executives in the company who are top earners and/or a vital aspect to the companies’ efficiency and overall success. Next, use the executive carve-out to identify the key employees in the agency and compensate them adequately. As for the rest of the employees who are just starting up, put them on a starter plan and present them with buy up options so they recognize there potential for growth.

Overall, long-term care insurance can be a very powerful benefit to offer employees. In addition to the tax deductions and simplified underwriting; employees will feel secure knowing that their company is considering their future care needs and protecting their retirement funds from any potential long-term care events.

For facts, information, and resources visit http://www.ltcfp.com/home.aspx

For facts, information, and resources visit http://www.ltcfp.com/home.aspx

Author Bio: For facts, information, and resources visit http://www.ltcfp.com/home.aspx

Category: Business Management
Keywords: insurance, long term care, employer benefits, employee benefits, advantages, multi-life LTC, LTC