Help Cover Long Term Care Expenses
Giving employees access through the worksite gives employees a way to plan for the future. It may also help your business build a competitive benefits advantage. Individual long term care insurance provides your employees — and in some cases, their parents or other family members — with benefits that can help pay for the cost of care, and may provide a wider range of care choices. This coverage can be offered as a voluntary (employee-paid) benefit or as employer-paid coverage.
Discounts on Insurance Payments
MultiLife discounts, which are available when three or more employees are covered, extend to the employee and the employee’s family members, such as a spouse or civil union/domestic partner, adult children, parents, in-laws or grandparents. This may provide you and your employees with an affordable option to insure family members before care is needed.
Individual long term care insurance comes with possible tax advantages to either businesses or employees, depending on who pays the premium. Premiums paid by an employee or individual for a tax-qualified individual LTC insurance policy are generally treated as an itemized medical expense for tax purposes, subject to certain limits. Benefits paid on a qualified policy to an individual who is receiving care are generally not considered part of taxable income. In general, premiums paid by an employer for an employee’s qualified policy are fully deductible as a business expense, yet not considered as part of the employee’s gross income.