05/09/2012 1:30 pm - 2:30 pm
Long Term Care Insurance as a Voluntary Benefit
Long Term Care is one of the biggest issues facing our country. Over 90% of baby boomers have made no plans for the expense of long term care, even though they are turning 65 at the rate of around 10,000 per day. This presentation will discuss the impact that’s likely to have on employees and their families, their employers and governments. Employees that are caregivers cost businesses due to absenteeism, presenteeism, lost productivity and higher than average health care requirements. Government budgets are affected due to the fact that when people deplete their assets to pay for long term care expenses they are forced to rely on welfare.
The presentation will discuss the probability of needing care, the cost of that care, and how to plan for the cost. Long Term Care insurance will be discussed as one possible option in planning for long term care. We will look at gaps in health care insurance, and how Long Term Care insurance can fill those gaps, even for younger employees. We will examine what MediCare and Medicaid will pay for and what they won’t pay for.
Most previous attempts to offer long term care insurance at the workplace have used Group LTC products and have not been successful. This presentation will introduce Multi-Life products and discuss the advantages of this product. It will also show how to ensure a successful rollout, not only among the older employees, but also with younger employees, spouses and even extended family members. Unless the spouses and other family members are covered, you haven’t truly protected your business from the impact of a long term care event.
We will look at how a long term care insurance policy works; how to design a policy, what it covers, when it begins paying benefits, and how much it costs.
We will discuss the different ways that Long Term Care insurance can be offered at the workplace. This includes an executive carve-out for only the top executives, a totally voluntary plan, a combination of a base plan or a full plan for top executives plus a voluntary offering to the rank and file, a base plan for all or some employees or a contribution toward plans for all or some employees. We will discuss the advantages of offering a plan through the worksite, including the preferential tax treatment that LTC premiums are given by the IRS.
Even if your company has previously rolled out a long term care benefit in the past, you may want to attend, as it may be in your company’s interest to roll out a new Multi-Life offering, especially if the first rollout had a poor participation rate. This would give your employees who didn’t take advantage of it the first time around a new window for Simplified Underwriting. If your company purchased a base plan for employees, and very few of them bought up to a meaningful level of benefits with inflation protection, you will benefit from attending this presentation. You may discover a way to better utilize those corporate dollars.