It has been well documented that planning for potential long-term care (LTC) needs is an important aspect of one’s overall financial strategy, especially given the statistics surrounding the possibility of needing care at some point. LTC insurance can help shield your retirement, savings, and other assets from depletion due to an unplanned medical event – providing important protection usually not covered by health insurance or Medicare.
Since most of the information surrounding LTC insurance options is focused primarily on individuals, you may not realize that being able to offer this coverage can come with certain tax deduction opportunities. As a business owner, you can secure this valuable coverage through your business and maximize the tax incentives available to you rather than purchasing a policy individually. In addition, offering this coverage to executives and key employees along with their spouses (and/or dependents) can help to retain, reward, and recruit these valuable people for your business.
Many opportunities exist for a business to offer LTC coverage for the owner and employees with varying tax advantages. The extent of the tax advantages depends on the type of business entity and how the coverage is funded, however, the LTC benefits are usually received tax-free.
Now is a great time to consider the options that are available to you and your key people. Unlike the original “use it or lose it” standalone policies of the past, most current policies provide guarantees, both in the form of premiums and LTC benefits along with a life insurance benefit as well.
We can help answer your questions and discuss the options available that are specific to your unique needs. Please connect with Mike Dwyer (530) 231-5625, mike@infinite-insurance.comor Evan Williams (916) 520-3969, evan@infinite-insurance.com to explore solutions that best fit your situation.
This information is intended primarily to provide subject matter regarding long-term care products intended for use as employee or owner/employee benefits. It is not intended to provide tax or legal advice. Clients should consult their own legal and/or tax advisor concerning their individual situations.