Long Term Care Insurance is an excellent Executive Carve-Out Benefit for Owners and Key Employees.
Not only can businesses customize the Long Term Care Insurance Benefit (and make them exclusive) to certain employees but the the company / owner can write off some, if not all, of the premiums as a legitimate business expense. In addition, the benefits are received income tax free to the policy holders.
Long Term Care Insurance policies can be set up on an individual and/or group basis and are owned (and portable) by the employee. However, unlike typical group plans, long term care policies are not guaranteed and require underwriting.
In addition, new trends in Long Term Care Insurance Planning include Life Insurance Plans with a Long Term Care Rider attached. These plans have some unique benefits including: Life Insurance Protection, Long Term Care funds if needed, and alleviate the concern of paying money into a Long Term Care Insurance Policy and never using or getting anything in return.
Please contact us to discuss how a Long Term Care Insurance plan can benefit you and your company.
Please note, all concepts, strategies, and products mentioned may not be suitable for you or your company. Information provided is not intended to be legal or tax advice. Please consult with your tax and legal advisor for specific tax questions.