Valuable Tax Advantages

Unlike some of the usual executive benefits, long term care insurance meets the requirements for an excellent executive carve-out benefit.

There are a number of important provisions under the Health Insurance Portability and Accountability Act of 1996 that can benefit both companies and employees:

• Employer-paid long term care insurance premiums for C-Corporations are 100% tax-deductible for the employer.
• Employer-paid premiums are not considered as income to the employee.
• S-Corporations, Limited Liability Corporations, Partnerships and Sole-Proprietors can use the self-employed health insurance deduction to deduct 100% of the premium they pay for their employees. For partners, members and shareholders, premiums are generally deductible but are subject to certain limits.
• The long term care insurance policy is always fully portable, so in the event that employees leave the company or retire, they can take their policies with them.

Limited-Pay Policies Can Make the Difference

A limited-pay policy, which is paid up after a fixed number of years (i.e. 5, 10, 15 or 20 years) or at age 65, is appealing to an employer because it has a preset cost payable over a determinable period of time. The premium is always higher on a limited-pay policy, which generates a larger tax deduction for the employer. When the employee retires, they receive a paid-up LTC policy instead of the traditional "gold watch".

The Time to Plan Is Now

In truth, long term care can be costly, as well as emotionally draining. By offering long term care insurance policies to your key executives, you can:

• Make it possible for them to better prepare for the future
• Help the protect their hard-earned assets and retirement savings

You can rely on Custom Care Solution, LLC. to provide the quality and dependability you and your employees need in today's competitive business environment.