More and more employers are rising to that challenge. Today, approximately half of Fortune 500 employers provide voluntary group LTC protection, and adoption of group LTC plans soared 892 percent between 1995 and 2008 as employers recognize three key advantages:

A more compelling suite of benefits. Providing an LTC option sends a strong signal that an employer isn't just concerned about an employee's well-being today, but far into the future as well.
Enhanced productivity. By addressing an important set of healthcare needs—and the management of those needs—LTC insurance can help reduce absenteeism and on-the-job distractions.
Protection of retirement savings. LTC insurance is as much a retirement planning tool as it is a health planning tool: Planning for costly LTC contingencies can help employees and retirees avoid damaging drawdowns of their retirement accounts.

There are three primary ways for employers to offer LTC solutions to their workforces:

100 percent voluntary. With this arrangement, employees pay all of the plan premiums, but usually benefit through lower premiums and more relaxed underwriting when compared to individual LTC plans. Premiums may be paid via payroll deduction, list bill or direct bill.
An employer base plan with buy-ups. Offering some base amount of company-paid coverage builds awareness of the LTC planning need, while the option for employees to purchase additional coverage gives them the flexibility to tailor their own protection. An employer base can accommodate premiums that amount to as little as $10 to $20 per month per employee.
Executive carve-outs. This approach gives employers great latitude in choosing which employees will receive LTC insurance protection. It's possible, for example, to restrict eligibility based on factors such as years of service, job classification or occupation—while still deducting the premiums. Meanwhile, benefits are tax-free and the coverage is fully portable.

Over the past generation, employer retirement benefits have evolved into a model that requires employees to take an increasingly active role in insuring their personal success. Moving forward, I foresee LTC planning following a similar course. For that vision to become a reality, however, it's incumbent on employers to give employees access to tools that help them pursue the life of independence and security they've worked for.

Instant Insights /

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