Professionals who have worked hard and built-up assets over the course of their careers may be particularly concerned that their savings could be affected by a long-term care event. As the costs associated with long term care continue to rise, even employees with substantial incomes and adequate retirement savings may be wondering how they would cover the costs of future care for themselves or their loved ones, should the need arise.
Just as most employers provide health and retirement benefits, growing numbers of companies are offering group long term care insurance as part of their benefit packages. Providing access to long term care coverage can help to ease employee concerns about how they will fund future care. Designed appropriately, the addition of long-term care insurance to a company’s benefit package can help the business meet its recruitment and retention goals.
While employers may offer long term care insurance as a voluntary, employee-paid benefit, employees may be more likely to value the benefit when employers also contribute to the policies. In some cases, employers may purchase a “core” long term care insurance benefit for each employee, giving employees the option of purchasing additional benefits or higher benefit levels.
Employers wishing to offer more comprehensive long term care insurance benefits can help control the cost of premiums by imposing vesting and/or waiting periods for enrollment. In certain cases, employer contributions to long term care insurance plans may be tax deductible to the employer and excludable from the employee’s income.
It’s common to underestimate the cost of long-term care and overestimate the funding that will be available through public programs and private health insurance. In reality, Medicare only covers short-term care. It may also cover some nursing home or assisted living costs, but only for a limited number of days of “skilled care” following a three-day hospital stay. Consequently, Medicaid has become the primary source of public funding for long term care. But, because it is a government program designed to help those in financial need, individuals must “spend down” their personal assets and meet the Federal poverty guidelines before qualifying for assistance.
If you’re like many professionals, you may be concerned about the potential impact a long-term care event could have on your finances. Adding a long-term care insurance policy to your benefits package can help give you peace of mind and protect your assets. At our firm, we specialize in retirement planning and can work with you to create a Custom Retirement Paycheck Plan that includes life and long-term care insurance. We understand the importance of being prepared for any eventuality and would be happy to provide you with a no-cost, no-obligation second opinion appointment so that you can learn more about how these policies could benefit you.
Let us show you in black and white a custom retirement income plan that is comprehensive, individualized and based on strategies that balance growth with downside protection. Get your Custom Retirement Paycheck Plan now!
Give us a call at our Charlotte office at (704) 248-8549, or our Clemmons office at (336) 391-3409. Or, click here to request a no-cost, no-obligation meeting.
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