When it comes to long-term care insurance, many producers focus their efforts on individual consumers. Understandable, given the value of LTCI in the face of rising long-term care expenses. However, it would be a mistake to overlook small businesses. Many business owners may not be aware of how long-term care insurance can be used to enhance their operations. So, what are those benefits?
Retain Key Employees
LTCI has become a popular executive benefit over the last several years. LTC was excluded from the nondiscrimination rules in the Affordable Care Act. This means a company can be selective about which employees they cover with LTCI benefits. This “golden handcuff” approach is used by many organizations to recruit and retain top talent. Keeping these key executives on board can be vital to the success of a growing company.
One of the biggest benefits for a company that provides LTCI for executives or employees is the tax incentives. Most LTC policies are tax-qualified, meaning they may be eligible for tax deductions. The details regarding tax deductibility are dependent on the status of the company. In other words, tax treatment for a C Corp will be different than it would be for an LLC or partnership.
This is just a brief look at two ways a company can benefit from incorporating LTCI into its employee benefits package. Do you have clients or prospects who own a small business? If so, IAMS has a resource for you. Our complimentary 2022 LTCI Sales Package includes the “Tax Deductions and Tax-Free Income Utilizing Single Premium Life Insurance” presentation. A recent edition of Marketing Corner explored how SPL products can offer a good alternative to a traditional LTCI policy. This presentation digs deeper and breaks down how different businesses can leverage the aforementioned tax incentives. Get your copy of the presentation, along with a wealth of other great LTCI resources, today.
This package includes:
- Pre-approach letters
- Key LTC statistics
- Understanding LTC and Chronic Illness Riders Presentation
- Client presentations
- Concept sheets and more
Click below to request your LTCI Kit.