Offering Long-Term Care Insurance to Employees

Long term care insurance protects the insured in the event of their inability to perform the six activities of daily living (ADLs)—bathing, cognitive impairment, continence, dressing, toileting and transferring.

Long term care benefits are typically paid (claims trigger) when the claimant is unable to perform two ADLs.

Benefits are paid after an elimination period with the duration of benefits ranging from 2 years to lifetime with monthly maximums as high as $15,000 per month.

For best results, an employer will fund a core benefit with the employee purchasing additional coverage (inflation protection, higher benefit limits, longer benefit duration) on a guarantee issue basis. Long term care can be offered to spouses, and other family members subject to proof of insurability. Plan cost for the core benefit is typically less than $20 per employee per month.