An updated workplace guide, announced this week, describes the tax, productivity, and other benefits of adding the missing link to employee benefit packages: long-term care insurance. Titled “Long Term Care Outreach and Education Program,” the 12-page guide is published by LTC Financial Partners.
"For many organizations, the tax advantages alone can make a difference of hundreds to hundreds of thousands of dollars a year, depending on their size," says John Cullen, an LTC specialist with LTC Financial Partners, which maintains offices in Port Clinton. “Our updated guide explains why.”
Businesses have the choice of providing the tax-favored insurance just for the owners and their spouses and dependents or to key individuals or to all employees.
The guide details the advantages and requirements of each option. The organization may choose to pay all, some, or none of the premiums. When employees pay, they generally enjoy a group rate and simplified underwriting. The tax benefits apply, in varying ways, to sole proprietorships, partnerships, C-corporations, S-corporations, limited liability companies, charities and other non-profits including associations.
Beyond tax savings, the guide describes bottom-line business benefits ranging from employee satisfaction and retention to increased “presenteeism” and productivity. “Having LTC insurance puts employees at ease, knowing there’s a way to pay for care without jeopardizing their 401k’s,” says Cullen. “They can focus on work instead of worrying about an incapacitated family member.”
LTC insurance, traditionally purchased by individuals on their own, is fast becoming a workplace product. The average age of applicants has been trending downward, from the mid 60's to the mid 50's. "Younger people, still vital in the workforce, are seeing the value,” says Cullen. “So are their employers."
The guide is available free from Cullen
LTC Financial Partners does not offer tax advice but teams with accountants and other tax experts to help their clients get all the deductions or other benefits available to them.
John Cullen is a leading long-term care insurance agent in Ohio, serving consumers as well as organizations seeking long-term care insurance. “We’re glad to help them learn if this type of protection is right for them, and if it is, to find the best, most affordable policy for their situation, including available financial incentives,” Cullen says.