All About Voluntary Benefits (Part 4) - Permanent Life & Long-Term Care
Most people understand the importance of incorporating some kind of life insurance into their plan, but with so many different types of policies and terms getting thrown around, it can be hard to keep up. This week’s voluntary benefit blog explores permanent life insurance paired with long-term care and explains why this combination can be a valuable benefit to offer your employees.
What It Covers
Permanent life insurance, also called whole life insurance, is exactly what the name suggests: permanent. A permanent life insurance policy provides coverage to a policyholder for his or her entire life and pays a death benefit to their beneficiary at their time of death. These policies also include a savings component where cash value may accumulate.
When paired with long-term care, employees are covered for costs often associated with aging or chronic illness. As opposed to a long-term disability policy, which only covers lost salary during an extended medical leave, long-term care provides financial support for things like medical services, nursing home care, assisted living centers and adult day care centers.
Why It Matters to Employees
Most people don’t like to think about growing old, but statistics tell us that 52% of people turning age 65 will need long-term care services in their lifetime. Healthcare plans don’t usually provide benefits for health-related needs of older adults such as in-home assistance or assisted living communities, and these costs can add up quick. The average cost of care per year in a nursing home is $91,250 for a private room and $80,300 for a shared room.
Long-term care provides benefits well beyond what Medicare can provide, as well as inflation protection to ensure financial stability through the years. Permanent life paired with long-term care insurance is an investment in your employees’ future.
Why It Matters to Organizations
By offering this coverage, you’re able to provide your employees and their families with protection from the uncertainty of future costs surrounding both medical and non-medical services they will likely encounter as they age. Incorporating permanent life paired with long-term care insurance also allows you to offer a competitive benefits package to attract more seasoned professionals.
This is just one of the many voluntary benefits that can give your employees more choice and freedom when it comes to their benefits plan. To learn how our EnrollSMART approach can help elevate your offerings, contact a member of the ‘A’ Team!
- All About Voluntary Benefits (Part 1) – Accident Coverage
- All About Voluntary Benefits (Part 2) - Identity Theft Insurance
- All About Voluntary Benefits (Part 3) - Short-Term Disability
ABOUT THE AUTHOR