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Employers

Implementation Options

Companies do well by doing good

EM Power Long Term Care Services

Employers are in a unique position to educate employees about their planning options—options that may not be available to them later as a result of illness or accident, or when age-based rates just become too expensive.

Employers can selectively pay premiums for owners and key employees while offering coverage to other employees on a voluntary basis. Doing this can spare employees the emotional and financial pain that arises when a family member needs long-term care.

Voluntary

Employees receive an opportunity to purchase long-term care insurance without cost to the company with premium discounts for their employees and extended family members—including spouses, parents, grandparents and in-laws. Employees will be provided access to educational information sessions as well as an opportunity to work one-on-one with a benefit advisor to develop a customized solution.

Additionally, employees and their spouses may be eligible for simplified underwriting which is the only way some employees may be able to pass the medical underwriting process. Most important, employees learn about this planning issue earlier than they would otherwise, and have access to discounts when age-based premiums are lowest.

Employer Paid

Employers are allowed to pay for coverage selectively by class of employee—including owners and key executives. Employers can choose to pay for or subsidize the cost of coverage for certain groups of employees—based on position, length of service, or other criteria so long as these criteria do not include age, sex, ethnicity, or race.

Employer paid premiums are tax deductible to the company, do not count as income to the employee, and when benefits are collected, they are received tax free.

Paying, or contributing toward the cost of an executive group will generally meet minimum participation requirements allowing companies to offer discounts and underwriting concessions to other employees on a voluntary basis.

Long-term care coverage can be enhanced for executives with additional riders including paid up options and return of premium at death.