Long Term Care Insurance Employee Benefit Advantages
Many companies are wondering what to do about long term care and whether or not they should offer it as a benefit. It's not widely known that employers can plug long term care planning as a benefit in, at no cost to them. This can be offered on a purely voluntary basis. Simply put, what that means is if the client or the employee wants to participate, they do so at their own cost.
The employer can pay for it if they wish. They can pay for all of the premium or a portion of it and it may or may not be tax favorable depending upon the product that has put in as a benefit. Some other advantages could be underwriting. For instance, on the open market if an individual is to be underwritten for long term care, they have to reveal 10 plus year medical history, 10 plus year surgical history and 10 plus year medication history that they have taken or are taking. This can preclude some people from securing long term care.
One of the advantages of offering long term care as an employer is that there can be limited to no questions as it relates to underwriting. Still another advantage of offering this as a benefit through companies is an educational awareness campaign where clients and employees can understand what long term care is and perhaps more importantly, what it isn't.
Still another important consideration when you're building a plan for success for employers is having group meetings, having individual meetings so the individual employees can get their questions answered and having an awareness campaign that's independent of open enrollment. Do not put this product in and combine it with open enrollment. It will fail. One of the reasons that this is successful is it is usually put before open enrollment or after.