Executive Benefits

A Benefit to Help Firms Recruit, Retain, Reward, and Retire their top executives…

Addressing Extended Care Planning Needs

As technological advances are made in medicine and as more people begin adopting healthier lifestyles, people are living longer than ever before. This longer life expectancy increases the likelihood that long-term care, such as home health care, stays in assisted living facilities, or more intensive and ongoing care in a nursing home could be required.

Today, long-term care planning is a critical piece of a personal risk management strategy. Without it, accumulated wealth will be jeopardized, since only a very small percentage of extended health care expenses are covered by Medicare, major medical, or disability insurance.With this significant risk of incurring a substantial financial burden, even the wealthiest of individuals should consider protecting themselves.

What is a Long-Term Care Executive Carve-out?

An Executive Carve-out allows you to offer tax-qualified, LTCi to a select group of employees, on a discriminatory basis.

With the annual cost of extended health care services increasing each year, paying for these services quickly cause financial hardships — even on those individuals with considerable assets.

“Employers who recognize the opportunity to take a leadership role by offering creative benefits solutions and financial advice and guidance will position themselves to emerge from these challenging times with their most valuable asset—the people who work for them—focused and engaged”.

By offering these benefits firms can also:

• Recruit, reward and retain talent
• Offer a benefit at zero imputed income to employees
• Offer income tax-free employee benefits
• Provide fully portable plans for employees and their family members
• Deduct premiums from taxable income, even for equity owners (age based limitations)
• Provide a health care advocacy program for employees

 

LTCi offers a very practical tool for solving the challenges posed by this issue for employees, executives and their benefit brokers. For more information please contact MS Consulting Group for a complimentary consultation.