According to Angleman, more young buyers purchase LTC insurance because:

• Premium costs are lower. The younger you purchase an LTC plan, the lower the premium cost.
• LTC insurance is an increasingly common employee benefit.  More businesses are offering employer-sponsored LTC insurance, either at a group discount or by paying a portion of the premium, making them an attractive investment option for employees.
• Pension plans and retiree health care benefits are declining.  As employers continue to cut pension plans and shift more health insurance costs to retirees, employees are worried about their retirement income and are taking a vested role in their retirement planning.
• Americans are living longer. As a result, one out of every two individuals over the age of 65 will require long-term care. (Source: Department of Labor)
• Out-of-pocket costs for nursing homes / home health care run between $50,000 - $100,000 or more.  According to the Senate Special Committee on Aging, long-term-care costs are expected to double by 2025 and almost quadruple by 2050.

Why offer long term-care insurance as an employee benefit:

• It’s becoming a staple employee benefits offering.  According to Unum, 92% of its 2006 LTC cases had some level of premium contribution from the employer. Certain employers like professional service firms, health care providers, and technology companies need to have LTC insurance as a standard benefit offering in order to remain competitive, notes Angleman.
•  Employees value it. Long-term care insurance is a smart investment for individuals who have assets to protect but not enough liquid assets to pay for ongoing, out-of-pocket health expenses like nursing homes or home care.
• It can offset premium increases to other benefit offerings, such as health insurance.  If you are shifting more health insurance costs to the employee, then offering LTC insurance can offset or soften the blow of such increases, restore employee morale and stabilize retention.
• It’s tax deductible.  Employers may be able to deduct the cost of providing long-term care coverage in a similar manner as they deduct health insurance premiums now.

When offering LTC insurance, communication is key.

Once you decide to add a LTC insurance program to your employee benefits mix, Angleman suggests developing and implementing an internal communication plan to generate awareness and support subsequent enrollment. “The program should include routine corporate announcements, education seminars or Webinars, and promotion on your company Web site,” says Angleman.  “If you lack a formal HR department or if your HR resources are tapped, then NIA can help you create and coordinate a tailored corporate outreach plan, in addition to helping you select the right LTC insurance for your workforce.”

Ready to add LTC insurance to your employee benefits mix?
Contact your NIA insurance advisor or Denise Angleman at 201-587-2778 or denise@niagroup.com.