In today's economic environment, even successful business owners can have difficult retaining and recruiting talented employees. Many are asking, "What's the best way to reward my most valuable employees, so they will want to stay with us?"
While qualified plans are one answer, they have a serious limitation: All employees must be included–everyone, regardless of the benefit to the company–must be included.
Fortunately, there are other options designed to reward only certain employees. There are several possibilities to pursue, including he nonqualified deferred compensation plan, disability income plans; and corporate term life plans. But the one we want to focus on today is the opportunity with long-term care.
In the business marketplace, there are now simplified issue products for three to 10 lives, depending on the insurance company. It is also possible to extend the LTC to employee spouses.
The LTC market has added ease of enrollment for multilife groups with 24/7 online enrollment. More advisors and financial planners recognize that, with the extremely high cost of nursing home and at-home care, it makes sense to protect retirement assets with LTC coverage.
LTC allows selection discrimination, in much the same way as life insurance. In other words, an employer can determine who is eligible for this particular benefit. LTC can be provided for key employees as an added benefit. It will allow the employer to provide a meaningful benefit that can help reward and retain valuable associates.
At a time when financial security is a major concern and a top priority with employees, each of these four plans can demonstrate an employer's commitment to key employees.
Denise M. Desautels is the vice president of brokerage sales at First American Insurance Underwriters Inc. of Needham, Mass. She has more than 20 years experience working with life insurance producers. She can be contacted at (800) 444-8715 or via e-mail at ddesautels@faiu.com. Visit FAIU at www.faiu.com.
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