Life With Long-Term Care As An Employee Benefit – Exploring Your Options

As an employer, you understand the importance of offering comprehensive benefits beyond the basics. Life with Long-Term Care benefits play a pivotal role in safeguarding your workforce’s well-being and financial security, and strengthen your employee benefits strategy at the same time.

For your employees, intentionally planning ahead for Long-Term Care needs is important, these are not minor expenses:

Long Term Care is a Major Expense

Annual cost of care in a nursing home


Median annual cost of an in-home health aid


Estimated cost of care in the final five years for a dementia patient

(The Alzheimer’s Association)

How Do You Help Employees Plan For This?

Maybe you’ve already tried a standalone Long-Term Care plan

Offering a standalone LTC plan is a viable choice, but it’s crucial to recognize that such plans often have pricing structures that may make them cost-prohibitive for a significant portion of your employees. Underwriting criteria may further limit participation based on your workforce’s health history. While this option provides valuable LTC coverage, it may not be accessible to all. Many employees can’t afford it, and others simply can’t get it.

The advantages of bundling Long-Term Care benefits with Life Insurance

An alternative approach is to bundle LTC benefits with another essential plan that nearly every employee requires — Life Insurance. This strategy ensures that both LTC and Life coverage is available to everyone, regardless of their health history. Doing so maximizes accessibility while addressing the critical need for long-term care. This not only expands coverage but also simplifies the process for your employees.

Hybrid Life with Long-Term Care

  • 100% of policyholders receive a benefit — either from life insurance or long-term care
  • Offers guaranteed acceptance underwriting
  • Are typically more affordable and have level premiums
  • Accumulate cash value over time
  • Plan is an indemnity product and pays benefits regardless of the cost of service
  • Potential to pay claims during informal care
  • Portable

Standalone Long-Term Care Insurance

  • Only pays if long-term care is needed
  • Likely will require medical underwriting and family medical history review
  • Typically have higher costs and are subject to premium increases
  • Do not typically accumulate cash value

The Voluntary Benefits Shop Is Here To Help

Introducing a new benefit into your employee benefits package is a significant undertaking that requires careful consideration and planning. Fortunately, you don’t have to navigate this path alone. 

Gain a trusted partner who will

  • Help you select the right Life with LTC product tailored to your organization’s unique needs.
  • Guide you through the setup process, ensuring a seamless integration into your benefits package.
  • Provide comprehensive employee communication and valuable resources, making the transition smooth and transparent.
  • Manage employee education and enrollment efficiently, relieving your HR team of administrative burdens.
  • Handle all the paperwork and submissions to insurance carriers on your behalf, saving you time and effort.
  • Guarantee that your first invoice is accurate and hassle-free, ensuring a smooth implementation process.

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