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Why Long Term Care Insurance Should Be Included in an Executive's Employment Package
By Mary Ellen Dunn
Long-term care insurance can be included in an executive's employment package as a non-taxable benefit because this insurance is not subject to the anti-discrimination rule for a company. The company benefits from including long-term care insurance in the package if the Board of Directors has submitted and voted on a resolution that identifies that person or position as being eligible to receive a company-paid for long-term care insurance policy. Then, the company can write off the total premiums. The resolution can also include the premiums of the spouse in the package. The spouse's premiums would also be tax deductible to the company. This benefit to the executive does not require any administrative costs.
The company also benefits by adding long-term care insurance to the package because it is a way to retain key executives. The executive would have to almost double the monetary benefit of the premium in order to leave the company for financial reasons. Since the long-term care insurance policy is individually owned by the executive, the company is not responsible for the premiums if the executive leaves the company.
The executive benefits from having long-term care insurance be a part of the employment package because this is a benefit that does not increase the income to the executive. He/She does not have to include this as salary thereby there is no tax due from the receipt of the benefit. The executive also benefits by having his/her personal retirement strategy protected from a serious physical occurrence due to an accident or health that could unravel the retirement plan. The long-term care insurance policy can supplement the long-term disability income insurance that may be provided by the company. Thus, costs to pay for the executive's and/or spouse's care, should a disability occur, could be paid for by the long-term care insurance policy and not by the executive.
To learn more about this business opportunity, contact Mary Ellen Dunn, owner of Dunn Insurance Services LLC. Dunn Insurance Services specializes in long-term care insurance and represents 12 of the highest rated and most active companies in the industry. Please visit www.dunninsuranceservices.org or call 602.923.4949. About the Author Mary Ellen Dunn is the owner of Arizona-based Dunn Insurance Services and specializes in long-term care insurance plans for both businesses and individuals. She represents 12 of the highest rated and most active companies in the industry.
In 2005 she was presented with the National LTC Insurance Sales Achievement Award by "Long-Term Care Insurance Sales Strategies Magazine", a professional trade publication which recognizes the nation's leading long-term care insurance specialists. For more information, please visit http://www.dunninsuranceservices.org.
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