Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Long term care insurance provides benefits that extend beyond those paid under Medicare and most private insurance. The benefit is normally paid in months and at a predetermined level. The extremely helpful insurance is sometimes offered as a benefit by employers.
If the employer pays the premium, the employer is able to deduct that cost from his own taxes as a reasonable business expense (employee benefit.) The employee does not incur any income tax liability as a result. When a benefit is received it comes to the employee free of income tax.
There aren’t any “non-discrimination” rules that require an employer cover all of the employees. Executives should consider accepting an Employer Paid Long Term Care Insurance policy in exchange for a salary reduction. It is a win situation for the employer and also a win situation for the highly valued employee.
This benefit can be combined with a more comprehensive medical health care plan that includes additional benefits such as a comprehensive annual physical examination. This benefit can also be combined with a supplemental disability benefits program for valuable employees.
Employer paid long-term care insurance is often combined with retiree medical insurance. Among employers the trend is to reduce or eliminate retiree medical benefits to the “rank and file” employees. For highly compensated employee there is a trend towards cost sharing arrangements for medical expenses after retirement.
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If the employer pays the premium, the employer is able to deduct that cost from his own taxes as a reasonable business expense (employee benefit.) The employee does not incur any income tax liability as a result. When a benefit is received it comes to the employee free of income tax.
There aren’t any “non-discrimination” rules that require an employer cover all of the employees. Executives should consider accepting an Employer Paid Long Term Care Insurance policy in exchange for a salary reduction. It is a win situation for the employer and also a win situation for the highly valued employee.
This benefit can be combined with a more comprehensive medical health care plan that includes additional benefits such as a comprehensive annual physical examination. This benefit can also be combined with a supplemental disability benefits program for valuable employees.
Employer paid long-term care insurance is often combined with retiree medical insurance. Among employers the trend is to reduce or eliminate retiree medical benefits to the “rank and file” employees. For highly compensated employee there is a trend towards cost sharing arrangements for medical expenses after retirement.