For years, companies have recognized the wisdom of offering employee health wellness programs, as they positively impact employee productivity, reduce absenteeism, and increase overall morale. A logical next step is now gaining traction in the employee benefits marketplace, namely financial wellness programs.

Similar to employee health benefits, financial wellness programs are designed to offer employees guidance and tools to promote their long-term financial health. Studies have shown that many employees are distracted by their finances at work and that financial concerns are their most common cause of stress.

Helping to alleviate this source of distraction and stress can improve employee morale and productivity in the workplace, benefiting both the employee and employer.

A recent Bank of America Merrill Lynch Workplace Benefits Report found that 97 percent of large employers feel at least somewhat responsible for helping their employees improve their financial wellness and 90 percent believe workplace financial wellness programs will be a standard element in benefit packages within a decade.

As with any benefits program, it is important to align financial wellness program offerings with the specific needs of various employee groups. For example, the interests and needs of those just starting in the workforce will likely be quite different from employees approaching retirement age, when "retirement readiness" becomes a primary concern.

Those just starting out may be focused on financial priorities such as paying down student debt or purchasing a first home. For Gen-Xers and baby boomers on the other hand, participating in a financial wellness program that helps them take a close look at expected retirement income, health care and related expenses will likely be of utmost importance and viewed as an extremely valuable benefit.

An important component in those discussions, but one that is often overlooked, is long-term care.

Studies have shown that more than 70 percent of people over age 65 will need some long-term care (LTC) support in their lifetime. Given that the average annual cost of a moderate home care claim is $50,000 and the average annual nursing facility claim is $90,000, it is clear that LTC can have a major impact on anyone's retirement plan.

Employers looking to expand and rethink their benefits offerings can start by looking at their benefits holistically — not in silos.

Repositioning group LTC insurance as part of an overall wellness program (health and wealth) makes sense. One way to think about it is as 401(k) insurance and lifestyle protection coverage.

Group LTC insurance holds a number of significant benefits for employees. In addition to protecting retirement savings and lifestyle, there are discounts only available when purchased on a group basis. Pricing is gender neutral, which is a particularly favorable advantage for female employees, who can obtain coverage for 35 percent to 40 percent less than would be available by purchasing an individual policy.

Moreover, there is simplified underwriting for group LTC insurance and policies are fully portable. Additionally, LTC coverage gives employees a sense of control over their future healthcare choices and has the potential to relieve family members of the responsibility to provide long-term care.

While including LTC in the employee financial wellness discussion makes sense for all these reasons, some of the residual hesitancy to do so may be due to a lack of familiarity among brokers and HR professionals with the group LTC products available.

However, it is important to remember that help is available from Specialized LTC Advisors who are well-versed in best practices and trends and can assist in guiding the discussion of LTC insurance with employers and their employees.

Instant Insights /

Make long term care part of the employee financial wellness discussion

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