By John A. Wenstrup
Business has been great, John, we are doing all the right things for our people: medical, life and disability insurance, 401(k) the works. We believe that our people ARE our business! And we have all the executive perks for our top guns too! What more could we possibly do?
Have you considered Corporate Long Term Care (CLTC)? The answer is definitely outside the box for most HR people and compensation specialists.
Most successful executives are building reasonable portfolios for retirement despite today's crazy economic ride. But they are also living longer than any prior generation and that can create a sticky problem. Who will be lucky enough to die suddenly at age 95 on vacation in Park City vs. spending 25 years in a nursing home? It's the unpredictable expense of extended care that presents the unforeseen assault on their wealth.
43% of LTC claims are for people under 65.
85% of all claims for LTC are for other than nursing home care.
In southwest Ohio , the cost of care ranges from $49,275/year to $85,775/year. (6/2003)
Chances of needing extended care are 1 in 10 at age 55, 4 in 10 at age 65 and 6 in 10 at age 75.
72% of elderly Americans are impoverished after paying just one year of long term care.
Corporate Long Term Care is for the business with solid cash flow, a interest in providing non-taxed benefits, a preference to pick and chose who to include and a desire for a corporate tax deduction.
Just The Facts
Deductible to your business.
Company can pick & choose whom to include.
Premiums are not taxable income to employee.
Benefits are tax-free when received.
Complete flexibility in design.
Use ten pay premiums for owner/executive.
Use annual premiums for other employees.
Use voluntary payroll deduction for others.
Or offer only to owner/executives.
All coverages are totally portable. If your business has been great and you believe that your employees ARE your business, we offer design and research expertise in building a Corporate LTC strategy that works.
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The Wealth Alliance does not provide tax or legal advice. Tax laws are subject to change.
513-248-9242
John A. Wenstrup is a Chartered Financial Consultant and president of The Wenstrup Company. John specializes in retirement, wealth transfer & business succession planning.
This page is intended to demonstrate a concept and is for illustrative purposes only. This page is not intended as a projection or prediction of performance. Consult your tax and or legal counsel. |
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