As Americans age, long-term care insurance may prove one of the
most important insurance products on the market. The coverage pays
for assistance when a person is unable to care for himself or
herself because of a prolonged illness or disability, and it might
make a smart addition to your benefits package.
According to Murray A. Gordon, president of Maga Ltd., an
insurance agency based in Deerfield, Illinois, that specializes in
long-term care insurance, the coverage offers advantages to both
employers and employees. Like health insurance, employer-paid
premiums are usually tax-deductible, benefits are tax-free, and
employees can take their coverage with them if they retire or leave
the company.
Another advantage is that you don't have to offer it to all
employees. "With long-term care, you can do a carve-out, for
example, for key employees, or [use it to] reward employees who
have had a certain number of years of service," says Gordon.
Also, most policies allow employees to buy up from the core
benefit, as well as purchase coverage for extended family
members--great for baby boomers with aging parents.
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Long-term care insurance is complex, and evaluating various
polices takes time. Gordon advises doing independent research and
then shopping for an agent with expertise in this type of coverage
before making a final decision.
Jacquelyn Lynn is a freelance business writer in Orlando,
Florida.