Wellness is in.
With medical and health insurance costs spiraling, people are trying
harder to get and stay healthy. They’re also realizing that healthier living
and longer life can mean more retirement years on a fixed income, so
they’re stoking up 401(k)s and IRAs in preparation for those additional
“silver” years.

The combined effect of healthcare expense and a greater need for adequate retirement savings
presents the opportunity for small business owners to make a positive difference in their future
and the future of their employees.

The tool: a properly structured employee benefit program of individual long-term care insurance (LTCI).

LTCI is among the easiest programs a busy employer
can implement, with benefits far outweighing the effort
involved in getting educated and setting up the plan.

• Benefit #1. Addressing a critical issue head on. At home and at work,
long-term care has emerged as a critical issue. The cost for a nursing facility
approaches $75,000 a year, and a full-time home health aide can cost
$53,000. Sixty percent of Americans say they’re worried about being able to
pay for long-term care for themselves or a family member, but 75% don’t
have long-term care plans. Forty-four percent think Medicaid or health
insurance will foot the bill, but neither covers long-term skilled care. LTCI
policies do.

• Benefit #2. Maintaining productivity. No matter what age, small business
owners, their employees and family members are vulnerable to a sudden
serious illness or accident and being out of commission for an extended
period. An LTCI policy can keep a vital employee at work instead of on
family medical leave or trying to juggle work and taking care of someone at
home. It empowers families to keep income flowing in while preserving and
continuing to add to savings for the future.

• Benefit #3. Maximizing retirement income. Most people plan on living a
long time. If they do – no matter how wellness-focused they’ve been –
they’re likely to face the chronic conditions associated with aging. They’re
likelier to need help caring for themselves or family members, and LTCI
ensures that they can pay for it. Living longer can mean a longer retirement
and a corresponding longer need for income from savings. Long-term care
costs a lot without insurance and can eat up the savings, accumulated from
years of hard work.

• Benefit #4. Tax savings now! The government offers tax incentives to
Americans who take responsibility for their future long-term care needs.
Individuals who itemize tax deductions can treat qualified LTCI premiums
as a medical expense. Business owners can offer LTCI to all employees and
spouses or carve out a select group of key individuals for the plan. They can
offer it on a purely voluntary basis or pay for all or part of coverage.
Depending on the business type and the program’s structure, up to 100% of
employer expense can be tax-deductible.

Small business owners are known for being creative and receptive to new
ideas. An LTCI program is the next logical and critical step for small business
owners and their employees after medical insurance, personal savings and a
retirement plan. It completes the basic financial planning everyone should
have in place and rounds out the employee benefits
needed to attract and keep employees.