Long Term Care Insurance Specialist
Information for Employers
More and more companies are seeing the benefit of offering long term care insurance to their employees.
- Attracting and retaining superior employees
- Staying competitive with or surpassing other companies in your industry
- Can discriminate – not part of Section 125 Cafeteria Plans (ERISA)
- Company may contribute to the premium or not
- Group discounts – if a business qualifies as an endorsed group, all of the covered employees and eligible family members will receive a discount, usually 5-10%, depending on which insurance company and which plan is selected.
- Policies are portable, employees can continue coverage when they leave or retire.
The fact that the families of employees are often eligible for the coverage can make a big difference in employee productivity. Consider Julie, full-time employee, and mother of two school-aged children. Her parents purchased the coverage available through Julie’s employer at a discount, four years ago when it was first offered at her company.
Who qualifies as a group?
- Businesses - the parameters vary by insurance company, but generally require a minimum of three insured lives.
- Endorsed group - includes associations, trade or professional organizations, or labor unions, usually at least 10 members
- Most plans include spouse, parents, in-laws and others.
In the last year, Julie’s father has had a stroke, and he needs assistance with several of his daily activities, like bathing and dressing. Julie’s mother has had health issues of her own and is unable to care for him on her own.
At first, Julie kept getting interrupted at work, and tried to balance her home and job, along with helping out with her parents. She missed work, and even when she was there, was not able to focus on her work.
After a few months, the couple’s long term care policy kicked in, and now pays for a caregiver to go into the home and care for Julie’s father several hours every day. Julie’s parents are able to stay together in their home because of the extra help.
Julie is productive at work because she isn’t stressed out about having to be available, or receiving panicked phone calls for help. Her attendance at work is uninterrupted as well, since she’s not needed during the workday to drive her parents to doctor appointments, or to help out in their home.
Since Julie’s parents have paid for their own policies, this benefit cost the company nothing, yet they receive the benefit of higher productivity.
On average, individuals providing care for a family member will lose $566,000 in wages, $25,000 in Social Security, $67,000 in pension contributions.
Focusing on Retirement Needs: The Period After Retirement, Journal of Financial Service Professionals, July 2000