This document discusses the importance of long term care insurance for both employers and employees. It notes that over 1 in 3 Americans receiving long term care are working age adults, and the average nationwide cost of nursing home care is $76,000 per year. Long term care insurance can help cover these costs and protect savings. The document advocates that employers offer long term care insurance as an employee benefit, as it can help with employee retention and reduce absenteeism from caregiver responsibilities.

1. WHAT EVERY EMPLOYER SHOULD KNOW
ABOUT LONG TERM CARE
MORE THAN NURSING HOME CARE
ONE IN THREE
Americans receiving long term care
$76,000
PER YEAR
are working-age adults1 avg. nationwide cost2
HOME CARE
LONG TERM CARE INSURANCE IS
A VALUABLE BENEFIT
INTEGRAL TO EMPLOYEE COMPENSATION
$43,000
PER YEAR
(depending upon care)3
WITHOUT LONG TERM CARE INSURANCE
EXPENSES ARE FREQUENTLY FINANCIAL ADVANTAGES
PAID OUT-OF-POCKET Tax advantages employers can use
AN OUNCE OF PREVENTION
AUTOMATION Among caregivers, 1 in 3 report losing about 16
4
Making enrollment easier than ever hours of work per month to provide care
Only one employee benefit is specifically
designed to cover long term care expenses.
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2. I N T R O D U C T I O N
Most likely, you know someone who has needed long term care. So, you
probably know of the many difficulties an individual needing long term care
faces, and the impact it has on everyone he or she knows. Numerous physical,
financial and emotional challenges exist each day when care is needed.
Fortunately, the ability to prepare for these challenges is made easier when an
affordable solution is readily available. This is one reason why so many
employers are now offering long term care insurance to their employees.
With most of the implementation work handled by the insurer, adding group
long term care insurance to the existing benefits programs makes good
business sense, providing advantages to employers and their employees.
LONG TERM CARE INSURANCE
In The News
“More than one-third of companies now “Buy through work. If you’re offered a
offer long-term care insurance as a benefit ...” group policy at work, consider it; it might be
your best bet.”
“Experts suggest that people buy Forbes
policies while in their 40s to mid-50s, mainly 2009 Retirement Guide
“Making Your Money Last”
because premiums rise with age, roughly The Long-Term Care Insurance Solution
doubling every 10 years.”
“Employer-based plans have mulitple
“Purchasing Long-Term Care Insurance
advantages...”
The New York Times
through the workplace is more attractive...”
“Young workers must
face realities of long-term care” “...you can get a 5% to 10% discount
October 23, 2008 compared with buying insurance on your
own, plus you can keep the coverage if you
retire or change jobs.”
Kiplinger’s Personal Finance
“Long-Term Care Insurance for Less”
December, 2008

3. THE VALUE OF GROUP LONG TERM CARE INSURANCE
Paying for care received at home, in the community, in nursing homes, and in assisted-living
facilities is at the heart of LTC Insurance. But that is just the start.
1 in 5
For employees: For employers: workers provide
LTC Insurance programs may also provide: LTC Insurance programs may also provide: some level of care to
5
family members.
individualized plans for care a competitive edge
aids such as grab rails and wheelchair ramps retention of valuable employees
light house cleaning and meal preparation an attractive incentive in hiring employees
training for caregivers reductions in productivity losses
listings of care providers an easy implementation
wellness programs an alternative to increasing salaries
claim filing assistance increased morale
automatic bill payment arrangements
It’s no wonder LTC Insurance is receiving a lot
40% of people
group rates, locked-in at younger ages receiving LTC are
of attention from employers, employees,
financial planners, health care practioners, and
under
age 65.
1
politicial leaders.
12 million
Americans
ELIGIBILITY Coverage can be made available to:
are receiving
All eligible participants receive the same Full-time employees Grandparents
long term care.6
group rates, and couples discounts (when Part-time employees Sons & daughters
selected). For employer-paid programs, the
Spouses Brothers & sisters
employer contribution is typically extended
Domestic partners In-laws
only to employees. Coverage is fully portable
when employment (or membership) ends. Mothers & fathers Retirees
Most programs do not require a minimum number of employees to enroll.

4. WHY PEOPLE BUY LONG TERM CARE INSURANCE
To have choices To stay at home
Nothing makes us feel more vulnerable than Most people prefer to stay in their own home
losing control of basic choices. Having the ability or where they’re most comfortable. LTC
to choose the type of care that best serves an Insurance helps provide for many different
individual’s needs is just as important as having types of care and ser vices which enable
Just 21/2 years can
drain savings of the ability to pay for that care. LTC Insurance can individuals to stay in their own homes.
$200,000
7
help provide that control.
To protect savings and assets
To protect family and friends No one puts away money in hopes of one day
Family is usually the first place people turn for using it to pay for long term care. However, just
care, comfort, and support. But in many cases, as there is the possibility of being hospitalized
they are not professional caregivers. Weeks, or having a car accident, there is the possibility
months or years of care, even with just basic of needing long term care. In fact, the odds are
daily needs, places a large burden on a family´s much higher. Since LTC Insurance helps pay
shoulders. LTC Insurance provides services so for care, it also helps protect hard-earned
that family members can give support in more savings and assets.
meaningful ways.
$200
Nearly half of family
caregiving members
contribute this
amount each month
to help pay for care.8

5. WHY OTHERS WISHED THEY HAD
To avoid relying on the government To be able to afford care
Medicare – Before any assistance an be With the average length of a long term care
given, a hospital stay of at least 3 days is condition lasting nearly three years, the costs
required. Then, Medicare will cover only a can quickly add-up. Savings may pay for some
1/2 of family
few weeks of skilled care in a skilled nursing expense, however these assets are probably
home facility, and only a portion of expenses earmarked for other things. In addition, long
caregivers juggle
for the next few months. term care may be needed before enough full-time jobs.9
Medicaid – Intended for people without money has been accumulated.
sufficient income or means to provide for
themselves, Medicaid provides help only To avoid becoming a burden
after most personal savings have been While family members may want to do all they
depleted. It acts largely as a safety net when can to help, caring for a family member has
there are no other options. many adverse financial and emotional
Veteran’s Administration – The V.A. consequences, that may place a serious strain
provides little in the way of long term care; on the family.
what it does provide must be the result of a
service-related injury.
HOW is
long term care
To have insurance that covers expenses commonly 2 1/2 years
paid for?
11
Many people are surprised to learn that their is the average length
health insurance does not pay for long term of a long-term nursing
Out-of-Pocket home care stay.10
care. Health insurance is designed to cover
Other
skilled and rehabilitative services only, not care
for a long period of time. Long term care is also Medicaid
Medicare
not covered by other kinds of insurance, like
Insurance
disability insurance.
Traditional alternatives to LTC Insurance are often
unreliable, unobtainable or undesirable.

6. WHY EMPLOYERS OFFER LONG TERM CARE INSURANCE
Retain valued employees by providing a more Gain competitive edge in attracting new
comprehensive benefits package employees
Minimize absenteeism and productivity losses As a substitute for increasing salaries
due to employee’s caregiving responsibilities
30% Maintain positive morale and focus
Reduce employee stress which can lead to
of caregivers Receive potential tax advantages
health problems
miss 16 hours
of work due to
caregiving
responsibilities
each month.4
SIMPLE IMPLEMENTATION
For employers, having a dedicated Account Manager is like having an extra employee in HR,
Marketing, IT, and Operations.
Account Managers play an indispensable role Detailed Program Management:
in successful LTC benefit programs by ensuring One point of contact
a smooth enrollment process. Expect the Creation of operation plans
following from reputable carriers... Deployment of IT systems
Billing systems and functionality
A Customized Marketing Strategy:
Quality assurance and reporting
Preparation of enrollment materials and
$34 billiion schedules
in productivity losses Fast, Reliable Automation:
Brochures, emails and literature creation
due to caregiving
Customized websites Customized message delivery
responsibilities.12
Employee meetings Campaign and list management
Effectiveness measures Rate calculations
Billing and Payroll
Policy Issue
Online enrollment for employees and spouses

7. FINANCIAL ADVANTAGES
For Employers For Employees
C-Corporations – Premium contributions are Employer-paid premiums are not counted as
100% tax deductible as a business expense. taxable income. Employees who purchase 1/2 of women
S-Corporations, Sole Proprietors, and LLCs – coverage can deduct the premiums they pay caregivers experience
depression.
13
Premium contributions are deductible as a health as medical expenses, within limits under certain
insurance premium expense. conditions. Benefits received by the insured
are tax-free.
Employers should consult with their qualified
tax advisor for limitations and requirements.
2x
Employees who care
for individuals, who
have LTC insurance,
are twice as likely to
SOURCES
stay in their job.
14
1
U.S. Department of Health and Human Services. National Clearinghouse for Long Term Care Information.“Forty (40) percent of people
currently receiving long-term care are adults 18 to 64 years old.” 10/22/2008.
2
Genworth Financial 2008 Cost of Care Survey conducted by CareScout for Genworth. (Exact amount: $76,460) April, 2008.
3
Long Term Care Cost Study, Research Report 2008 conducted by LifeCare for Prudential. (Home care National average for a home
health aide/certified nursing assistant is $21 per hour. Home care figures assumes a 40 hours per week.) 07/08.
4
Consider Long Term Care Insurance Plans. Credit Union Magazine. March, 2003.
5
AARP Public Policy Institute, Research Report, In Brief: Valuing the Invaluable: A New Look at the Economic Value of Family
Caregiving. June, 2007
6
A Workforce to Care for Our Aging. Genworth Financial. 04/29/2008.
7
Approximation based on $76,460 average annual cost of private-room nursing home care for average length of long-term nursing
home stay of 21/2 years.
8
AARP Public Policy Institute. Long Term Care Research Report. October, 2007.
9
Caregiving in the U.S. National Alliance for Caregiving and AARP funded by MetLife Foundation. April, 2004.
,
10
Centers for Disease Control and Prevention,National Center for Health Statistics. The National Nursing Home Survey. 1999.
11
National Spending for Long Term Care, by Payer [in] 2005. H. Komisar and L. Thompson, National Spending for Long Term Care
(Washington, DC: Georgetown University Long Term Care Financing Project, February 2006). Long Term Care Financing: Policy Options
for the Furtue, June 2007.
12
Center for American Progress, Long Term Care by the Numbers, 2008.
13
Prevalence of Depression in Family Caregivers. Gallagher, D. Rose, J., Rivera, P Lovett, S., & Thompson, L. The Gerontologist. Vol. 29. 1989.
.,
14
The MetLife Study of Employed Caregivers: Does Long Term Care Insurance Make a Difference? Findings from a National Study by the
National Alliance for Caregiving and LifePlans, Inc. MetLife Mature Market Institute. March, 2001.

8. Are your employees ready for the challenges of long
term care?
The likelihood of needing long term care may be one
of your employees’ greatest uninsured risks.
You can make a positive difference in the way employees
handle a long term care event. And, offering long term
care insurance not only helps your employees, it can
help you to grow and protect your business.
Only one employee benefit is specifically
designed to cover long term care expenses.
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