hr: Money

Long term care insurance has been on the rise as the public came to realize that the government is unable or unwilling to pay the cost for long-term care. This has prompted a lot of people to seek help from their employers.

However, according to survey only a few employees understand what LTC insurance is all about, which is why active employee participation is, for the time being, a mere two percent.

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Basically, the provisions of individual LTC policies and those sponsored by the employer are about the same, except for the fact that in the case of the employer-sponsored policies, the employer shoulders the premium for the employees’ benefit.

The main idea behind LTC is to protect assets in case of illness or injury that requires long-term care.

To qualify for the benefits of LTC, the insured must not be incapable of doing two of the six dialy living tasks, such as eating, bathing and dressing or the insured must be suffering from dementia or other forms of severe cognitive impairment.

There’s usually an elimination or waiting period before the patient can avail of LTC insurance benefits.

Group policies may have limited benefits compared to individual individual LTC policies. However, employees may opt to purchase more coverage by paying additional premium.

On the part of the employer, premiums paid are tax deductible. Since LTC is a non-qualified benefit, it can be used as a form of incentive for employee performance.