Executives can benefit greatly from a long-term care insurance plan. Often executives are at an age in which they are dealing with aging relatives while paying for college costs for their own children, a “sandwich” situation that creates stress and anxiety. Adding LTC coverage to an executive’s benefit offering has several advantages, including:

• Tax incentives. Employer-paid LTC insurance has the advantage of not being considered income to the employee, and benefits are received taxfree. Premiums are also deductible to companies. For more details, take a look at the tax rules for LTC insurance. Rules for hybrid life/LTC plans follow similar rules to employer paid life insurance.                                                                                                                                                                                        
• Ability to “carve-out” class of employees. Unlike many other employer provided benefits subject to non-discrimination (ERISA) rules, this strategy enables employers to “carve out” and create a class of select employees to offer long-term care insurance. It works well for closely held family businesses. It is suggested that an employer use a category such as years of service, job title, compensation, or other criteria to create the class and offer coverage. Often employers create a corporate resolution that spells out eligibility for the program.             
• Streamlined Underwriting. Buying LTC insurance for an executive class means they may have access to special underwriting concessions. And, when they leave their employer or retire, these plans are 100% portable.

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