LTC Insurance Tax Benefits for Employers

Last updated: May 9, 2019 at 16:46 pm

LTC Insurance Tax Benefits

Through a long term care insurance executive carve-out program, employers can offer long term care insurance to a select group of employees. For example, a small company can have just two key executives it wants to insure for long term care, however the insurance company may require a minimum of three people to be insured. In this scenario, the wife of one of the executives can qualify as the third person and this small group would be eligible for the limited underwriting of group long term care insurance.

With the current annual cost of a semi-private room in a nursing home at $73,000, being protected from long term care costs just makes good financial sense.

Adding an executive long term care carve-out program can help an employer’s bottom line and the employee in a number of ways:

• This significant employee benefit helps recruit and retain key executives.
• Deduct long term care insurance premiums from taxable income, including equity owners.
• Provide employees with a significant part of their retirement planning.
• Group long term care underwriting is less restrictive than with individual plans, therefore health history not insurable with individual long term care underwriting may be acceptable with group long term care insurance.
• Provide a fully portable long term care insurance plan for employees and their family.