Companies that want to keep their valued employees from seeking work elsewhere need more than perks to entice them to stay for the long run. Offering long term care insurance may just be the thing to prevent most workers from leaving. Here is a short list on LTCI’s benefits that employers need to know about:
Retirement Planning and More
A company that actively promotes its employees’ welfare and safety for the future is definitely a place worth working and an avenue to truly build and grow a career in. More than planning for hardworking employees’ retirement,
insurance for long term care is something that can be treasured and to look forward to. In fact, more U.S. employers make sure that LTCI is part of their employee benefits package – with approximately 25% of the country’s largest companies and more than 50% small businesses with less than a hundred employees all offering some form of LTCI coverage as part of employment.
The major push to provide workers with access to care during the end years is a direct result of the Federal Long Term Care Insurance Program established Long Term Care Security Act during the year 2000 by then President George W. Clinton. The program prioritizes over 20 million people who have a pressing need to have the option to purchase LTC coverage. Aside from the care and support that workers are now entitled to, having long term care insurance can also protect an employee’s (and their family’s money) lifetime savings which can be used for other purposes such as funds for retirement instead. As such, an employer offered LTCI program grants both security and peace of mind for their workers.
Care and Support for Caregivers
Depending on company policies, long term care insurance can be extended not only to the employees themselves, but alternatively, to the workers’ parents as well. This opens up new and better opportunities to employees who struggle to keep a balance between work and caregiving duties back at their homes, especially for those who have to care for their parents and their own children at the same time.
Caregiving is an expensive endeavor. A study done by the Malone Consulting for the MN Board on Aging revealed that major U.S. companies lose $11 to $29 billion annually due to employees who also have to look after and support their own parents. With no LTC coverage, an employee may be working for nothing.
Aside from contributing to financial savings and positive psychological effects to the individual (because of having access to coverage for their parents or loved ones), long term care insurance can also be crucial in boosting an employee’s productivity at work. Also, workers who shift between their career and caregiving responsibilities were observed to be able to work harder and longer hours, with lesser stress involved, just as long an LTCI program is in place to cover their parents’ needs.
Employer Benefits
What do employers get in return from being able to provide LTCI programs for their employees? Providing an LTCI coverage option for workers can result to a tax deductible for companies, offering a cost-efficient plan in keeping a business running. Also, purchase of LTC insurance group plans can be customized by employers, which allow them to select which employees can take advantage of a policy, or if workers need to be in the company for a certain amount of time before being able to be part of a plan. Of course, purchasing a group plan is affordable than individual policies – more savings for employers to consider.
Aside from having the possibility of more productive personnel (both for those who are aiming to have their own LTC coverage for their retirement and for those who have caregiver responsibilities), employers can also bridge and build a strong working relationship with their employees by further explaining the importance of the long term care insurance as part of the employee benefits package. Going the extra mile of explaining the importance of long term care insurance to staff members can also help employers gauge their employees’ temperament, responsibilities, attitude, and intentions in growing in (and with) the company. Not everyone understands how insurance works, so for employers to effectively invest and retain their employees,
proper information and education about LTC needs to be discussed with workers.
LTCI can be considered as an incentive worth the loyalty and hard work that employees provide for a company. Coverage can also be considered as a way for employers to give back to their workers with the best gift there is – a fallback for the future. Lastly, employees working for a company that provides LTCi as part of an employment benefits package can also save themselves from the trouble and stress of applying for a plan.
Do you have other suggestions, thoughts or ideas on why businesses should offer long term care insurance for their employees? Please share them below.