Group LTCI Enrollment
- Voluntary – Voluntary enrollment means the employee pays for the entire premium
- Defined Plan Design – The employer pays the entire premium amount for a defined plan design. If the employee wants a higher level of long term care benefits, they can apply for and pay the extra premium amount. The employer typically deducts the extra premium from the employee’s paycheck.
- Carve-out – The employer pays for part of, or the entire premium, for the employees or executives (or other defined class) LTC insurance.
- Multi-tiered – A separate contribution level is offered based upon various tiers of employees. A tiered contribution could look like the following:
Tier A: The employer pays 100% of the insurance premiums for three top executives
Tier B: Seven key managers are given $100 per month toward their group LTC insurance premium
Tier C: Employer pays $50 per month for remaining 13 employees
Employer Paid Vs Voluntary
Participating employers may contribute to group long term care premiums for its employees. Or, the employer can choose to offer a voluntary (employee pays entire premium) program.
If the employer does not want to pay group long term care insurance premiums for all employees, an executive carve-out (or other defined class) can be a good solution.
Group long term care insurance in the workplace has no discrimination guidelines. Long term care insurance benefits can enhance an executive compensation package. This gives the employer better recruiting and retention of its key executives.