Employer Plans
Advantages of an Employer Sponsored Plan- Tax Deductible
- The majority of long-term care insurance premium contributions made by employers are tax deductible
- The exact tax consequences vary depending on the structure of the business; for example, sole proprietor, partnership, Limited Liability Corporation or C Corporation
- Premiums may be offered at a discount not otherwise available to individuals
- Premium discounts may be extend to spouses and other family members
- Executive Carve Out
- Offer the benefit to only higher-paid employees
- Employers can cover defined classes of workers
- More lenient Underwriting
- Enabling some people who would otherwise be uninsurable to obtain policies
- Benefits are not considered taxable income to the insured's or their families (even if the employer paid the premium)
- Employees with medical and dental expenses exceeding 7.5 percent of adjusted gross income may be able to also deduct eligible long-term care premiums they pay
- Employees do not pay income tax on premiums paid by employers or on benefits collected from their policies
