There is a growing awareness and concern surrounding steadily rising long-term care costs and the fact that our population is living longer, thereby creating an increased demand for inventive solutions. Many employers have heard this demand loud and clear and are seeking methods that will provide their employees with the financial protection they need in the event that they should need long-term care.
One such solution is offering employees Group Long-Term Care insurance programs. Adding this new addition to an existing employee benefit plan is quickly gaining esteem from employers and employees alike, as these Long-Term Care insurance products are reasonably priced, while still being offered through highly rated insurance companies.
Four Ways the Employer Benefits in Offering Group Long-Term Care Insurance
1. One of the most frequently complained about aspects of the employer to employee relationship is that the employer doesn't care about their overall welfare and that of their dependents. Offering a Long-Term Care insurance program can build and strengthen employee morale and loyalty, as it directly shows that the employer is considering the welfare of their employees and employee dependents.
2. Adding an additional benefit, such as a long-term care product, enhances company attractiveness. In doing so, the employer is more likely to obtain and retain highly skilled and highly qualified employees.
3. Long-Term Care insurance can help to reduce the burden on employees caring for aged parents or chronically ill spouses, thereby decreasing their absenteeism and increasing their work productivity.
4. Offering Long-Term Care insurance will also help to encourage employees to focus on retirement and financial planning.
Two Things to Consider before Offering Long-Term Care Benefits to Employees
1. It is helpful for employers interested in offering this added benefit to their employees to apprise them on what it offers and what the benefits of the insurance are. From there, the employer will generally be able to determine the interest level among their specific employee groups.
2. The employer should also decide if and how much they will contribute toward the premium or if they will offer the long-term care coverage without paying toward the premium. One option that many employers find attractive is buying a base policy for their employees and then offering them an option to buy a comprehensive policy with their own contribution. This is a tax deductible expense for the employer as long as the premium contribution for the employee, employee spouse, and/or employee dependents is toward a qualified Long-Term Care insurance product. The contribution will also be excluded from the gross income of the employee.