Group Long Term Care Insurance
Group long term care insurance is a form in which you can purchase long term care coverage. However, the only way to enroll is through your employer. In this article, we will briefly go over how group long term care insurance works for employers and employees. If you would like an explanation of Long Term Care Insurance you can visit one of our other blogs here.
Benefits of Group Long Term Care Insurance
If you are an employee interested in Group Long Term Care coverage or an employer interested in offering it, there are benefits to both parties. Employee benefits include:
- Simplified Underwriting: For many employees, one of the greatest benefits GLTCI offers is the simple underwriting process. Individual LTCI has a very strict underwriting procedure. Because of this many can only qualify for group coverage.
- Protect Your Family: Coverage protects your family from the financial and physical burden of providing for your long term care. Some plans may also allow you to purchase additional coverage for your spouse or other family members.
Employer benefits include:
- Tax Deductions: For many companies GLTCI premiums are deductible. We will go more in-depth about this in one of the following subheadings.
- Retain Key Employees: By offering long term care coverage employers create a more competitive benefits package. They can use this to attract new key employees or retain current ones.
Types of Premium Coverage
An employer can offer different types of premium coverage. GLTCI does not have discrimination guidelines, so all employees do not need to receive equal coverage. Depending on the coverage your employer offers, one of the following enrollment options may be available to you.
- Voluntary: The employer pays the entire premium.
- Defined Plan Design: With this plan, the employer will still pay the entire premium. But If an employee desires additional coverage they will be responsible for covering the additional premium amount.
- Multi-Tiered: This enrollment option sets out separate coverage rates depending on the tier of the employee.
The tax incentives that a business offering Group Long Term Care Insurance can receive will depend on the business’ structure. C-Corporations have the highest tax incentives. They can deduct 100% of the premiums paid. Additionally, these premiums are not subject to payroll taxes and are not included in an employee’s gross income. S-Corporations and partnerships can utilize the self-employed health insurance deduction to write off premiums paid for the owners. However, their individual gross income must include these premiums. Lastly, self-employed individuals may be able to deduct these premiums as a business expense.
If you are an employee interested in Group Long Term Care Insurance, you will need to contact your Human Resources department to see if your company offers coverage in your benefits package. If you are an employer, you will need to contact a qualified insurance agent or carrier to see if such a program is right for your company.
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