, September 2005
As Americans age, long-term care insurance may prove one of the most
important insurance products on the market. The coverage pays for
assistance when a person is unable to care for himself or herself
because of a prolonged illness or disability, and it might make a smart
addition to your benefits package.
According to Murray A. Gordon, president of Maga Ltd., an
insurance agency based in Deerfield, Illinois, that specializes in
long-term care insurance, the coverage offers advantages to both
employers and employees. Like health insurance, employer-paid premiums
are usually tax-deductible, benefits are tax-free, and employees can
take their coverage with them if they retire or leave the company.
Another advantage is that you don't have to offer it to all
employees. "With long-term care, you can do a carve-out, for example,
for key employees, or [use it to] reward employees who have had a
certain number of years of service," says Gordon. Also, most policies
allow employees to buy up from the core benefit, as well as purchase
coverage for extended family members--great for baby boomers with aging
parents.
Long-term care insurance is complex, and evaluating various polices
takes time. Gordon advises doing independent research and then shopping
for an agent with expertise in this type of coverage before making a
final decision.
Jacquelyn Lynn is a freelance business writer in Orlando, Florida.
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