A Step Ahead
Consider offering employees long-term care insurance.
Because Americans are living longer, many will need some form of long-term care. Unfortunately, the cost of that care can be devastating. The solution is long-term care insurance, which typically pays for nonmedical care that health insurance policies or Medicare generally don't cover.
"Anyone over the age of 50 should plan for long-term care," says Jesse R. Slome, executive director of the American Association for Long-Term Care Insurance.
Most LTCI policies are individual, says Slome, but more companies are offering this product as a benefit to employees and their families. Companies can offer coverage as a voluntary benefit (meaning the employee pays the entire cost) or pay for a core plan with limited benefits and allow employees to increase coverage at their own expense. An estimated 40 to 50 insurers provide LTCI products with varying terms.
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For entrepreneurs, LTCI premiums may be tax-deductible as a business expense. Check with your tax advisor to choose and structure a plan with this benefit in mind.
Slome recommends talking to an LTCI specialist and asking these questions: Is the policy federally tax-qualified? Does the policy allow you to use benefits for home care? Are benefit maximums calculated on a daily or monthly basis? What discounts are available, and how does one qualify for them?
Jacquelyn Lynn is a freelance business writer in Orlando, Florida.