Group LTC Benefits Blog

4 Reasons to Offer Executive Long-Term Care Insurance


Is Executive LTC Insurance making a comeback?  Popular in the 1990's and prior to the 2008 financial crisis, there are many unique advantages to these plans that can make them a popular choice to offer to closely held businesses.  Here are 4 of them:

  1. It's a long-term committment to the executive.  A LTC Insurance benefit last a lifetime - 20 to 30 years beyond employment.  Not quite a "Golden Handcuff", it sends a message of the importance of key employees and can help with retention and recruitment efforts.
  2. Timing is right.  Many executives are part of the sandwich generations - dealing with aging parents and children.  They may be experiencing issues related to aging parents and already be looking at buyng LTC Insurance.
  3. Healthcare is Front-of-Mind.  One of the biggest concerns of people in pre-retirement is planning for healthcare in retirement.    According to the Fidelity health care estimator, a 55 year old male who retires at age 68 will need about $279,000 to pay for health care costs- and that's before LTC costs!
  4. Favorable Tax-Treatment. Especially for C-Corporations, employer paid LTC Insurance offers a "Triple-threat" to a group of selected executives- premiums are fully deductible, not considered part of income, and benefits are tax-free when used for qualified LTC services.  

There are several carriers that offer Executive LTC plans, including a new plan from National Guardian Life.  If you'd like to learn more, check out the resources below or consider viewing to our recent webinar on Executive LTC Planning.


Download 2016 LTCI Tax Summary


Topics: Group LTCI,

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