Why Business Owners Should Consider Long term Care Insurance
Employers can offer long term care protection as either a workplace benefit or a voluntary benefit with no cost to the company. Either way, there are a number of significant benefits to businesses who offer long term care insurance on a group basis. Benefits can include significant tax advantages, simplified health underwriting and enhanced ability to attract and retain the best employees.
According to a MetLife Mature Market Institute study, more than half of caregivers are full time employees. These caregiving responsibilities are estimated to cost American businesses $29 billion annually in lost productivity.
Of those needing long term care services, 43% are between the working ages of 18 and 65. The financial risk is significant because the cost of long term care in the United States is currently averaging $92,378 annually. By 2026 the annual cost is projected to be $124,148. Multiplied by the 3 year average length of care, the risk will be $372,440 per person.
Advantages for Your Business and Employees
- Premiums are not considered income to the employee
- Premiums can be 100% tax-deductible to the business
- Coverage can be a selective offering and is not subject to discrimination testing
- Coverage offered on a group basis can have significantly relaxed health screening, even for groups with only 10 eligible employees
- Discounted multi-life premiums are available and further discounts can apply if the business chooses to make an Employer Contribution