Is Long Term Care Insurance a Critical Employee Benefit?
As the population of people ages 65 and older rapidly increases over the next 30 years, more and more adult children will be taking care of their parents. In fact, in the last 15 years the percentage of employees acting as parent caregivers has tripled, with about 57 percent providing 16 or more hours of care on a weekly basis. At the same time, employees that have chronic health conditions will eventually need long term care.
Long term care insurance has been identified by EM-Power Services as a critical employee benefit and has cited five reasons as to why employers should offer this much needed benefit.
1. Long Term Care Insurance Decreases Health Insurance Costs
Those that work plus provide care for a parent use more health care benefits due to conditions such as stress, anxiety, and depression. Holding a full-time job and coming home to care for a parent can be physically and emotionally draining. In fact, it is estimated that working caregivers use 8 percent more insurance, which costs about $13 billion annually. Thus, long term care insurance can decrease health insurance costs.
2. Long Term Care Insurance Keeps Productivity Levels Stable
At least 60 percent of caregivers re-arrange their work schedule such as coming in late or leaving early, cutting hours, or taking a leave of absence to care for a parent. Long term care insurance can offer resources to help so employees can spend more time at work so that productivity is not affected.
3. Long Term Care Insurance Saves Money In The Long Run
Long term care medical facilities are very costly, with some costing over $80,000 per year. It doesn’t take long before savings and retirement funds are wiped out as traditional health insurance does not cover long term care.
4. Tax Incentives Save Money
The government allows long term care premium payments to be tax deductible to the company, allowing companies to offer long term care insurance as an employee benefit at an affordable price.
5. Companies Benefit By Doing Good
By a company offering long term care insurance benefits, employees are able to learn about the financial dangers of having to pay for future long term care. Employees take many years to save for a retirement fund and they don’t want to deplete that fund quickly on long term care.
For more information on EM-Power Services, visit http://www.longtermcarefacts.co.