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Long Term Care

Path through MeadowHelping Offset the Cost of Extended Care

When it comes to your health, no one has a crystal ball to look into the future, but most Americans are living longer and healthier lives thanks to advances in medicine and preventive care. While that is welcome news, it also means there is an increased risk of living with a chronic health condition that will require extended care. With the average private-pay nursing home stay costing $80,000, a long-term care insurance policy allows you to offset the high cost of extended care due to accidents, illnesses or advanced age while protecting your personal assets.


What is long-term care and who needs it?

Long-term care refers to a wide array of medical care, personal assistance and social support services for people who are physically or mentally unable to independently care for themselves for an extended period of time.


What is the cost of long term care?

According to the MetLife Market Survey of Nursing Home and Assisted Living Costs, long-term care can be costly. In 2015, the average private-pay cost of care per year in a nursing home was $91,250 for a private room and $80,300 for a shared room. Assisted living rates also averaged $43,200 per year. Rates vary, depending on region, size of the accommodations, services available, quality of care and amenities.

Long-term care insurance protects individuals against incurring large out-of-pocket expenses. Individual policies are ideal for those who want an increased level of financial protection should they need help performing the activities of daily living due to an accident, illness or injury.


Offering LTC in the workplace provides numerous benefits to employees. Here are a few:

• Timely and valuable education on the need for LTC planning
• Addressing a significant “gap” in the employee’s financial plan and helps protect their 401(k) or savings
• Simplified underwriting
• Unisex rates and groups discounts
• Ability to carve out select classes of employees ¹
• Benefits are generally received income tax-free ²
• W2 employees can pay for LTC Insurance through an HSA ³

To learn more about your coverage options, potential taxes advantages and how a policy can help you to protect your employees’ financial future please contact us.

Sources: 1. Treasury Regulations 1.105-5. 2. IS Code 7702B. 3. IRS Notices 2004-50, Q and A 41 (HSA’s)


For more information, contact our Non-Medical Benefits Practice Team:
Tina Santelli, CBC, GBDS
Vice President, Specialty Benefits

Tiffany Brown, GBDS
Ancillary Specialist