To Reach Women Entrepreneurs, Talk About LTC

But its hardly a slam-dunk sale. Generally, people 60 and over are the most motivated buyers for LTC insurance. Though more amenable than men, women in the middle of their careers need to see LTCI as a pressing need before theyll commit.

Cost is another sticking point. Solid LTC coverage isnt exorbitant, but its not inexpensive.

One answer to the cost dilemma for the woman business owner is this: Let your company pay for LTC insurance through an executive carve-out combined with a health savings account, or HSA, so that the business owner can pay the premiums with pretax dollars. It doesnt matter whether the company is an S or C corporation, partnership or sole proprietorshipall types of businesses and all sizes are eligible, as long as the health-insurance plan has a high deductible. Combine the HSA sale with the LTC sale and youll have one of the safest and most creative ways to offer an LTC insurance carve-out. And that strategy offers another way to take advantage of HSAs, one of todays hottest products for businesses and individuals.

LTC insurance is also hot, as sales in the workplace are increasing 35% annually. And one major reason is that LTCI doesnt have to fall under a cafeteria plan. If a company offers medical or dental insurance, it must be offered to all employees, but LTC insurance is one of the few benefits that can be carved out for a select group of one or more owners or executives.

Another option is for the company to fund the LTCI plan at a low level for all employees and pay for $30 a day in benefits, for example. Employees can buy higher limits as they like, and the company can pay for a higher level of benefits for the owner and perhaps other key executives.

Today, LTC insurance premiums count as a qualified medical expense that can be paid completely from money accumulated in the HSA up to certain limits, which vary by age. In 2005, the limits (which are indexed to the inflation rate) range from $260 for taxpayers age 40 or under to $3,250 for taxpayers age 71 and over. Because LTCI premiums are much lower at younger issue ages, the limits are reasonable and attractive. However, people age 65 or older cannot have an HSA because, for now, anyone on Medicare is ineligible to participate in the HSA program.

When you are making your presentation, remember that buying LTC insurance is as much an emotional decision as a cold-hearted calculation. Yes, you do have to explain the numbers and tax ramifications, but dont get so tied up in the details that you fail to give the woman business owner an emotionally compelling story.

Buying LTC insurance is all about staying financially independent and protecting ones family and estate.

Wilma G. Anderson, a sales trainer serving agents, companies and managing general agents, is president of Senior Care Associates Inc., Littleton, Colo. She can be reached at [email protected].

Reproduced from National Underwriter Edition, February 18, 2005. Copyright 2005 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.