Offering Life Insurance With Long-Term Care

*This article was published in Bank Director magazine’s third quarter 2024 issue.

Baby boomers and successive generations will enjoy unprecedented longevity com­pared to previous generations. The upside is obvious, but there’s a downside: the number of chronic health conditions that can require costly long-term care (LTC).

Why Later Is Too Late
The world’s population is aging at a faster rate than ever before. Since 2010, about 10,000 baby boomers have turned 65 every day, according to the U.S. Census Bureau. Americans 65 and older have a 70% chance of needing long-term care, according to the U.S. Department of Health and Human Services. LTC is costly to your employees, and it places a huge burden on most families who need it.

In fact, health and disability insurance don’t even cover LTC costs. Medicare isn’t always the answer, either. For most, LTC is an out-of-pocket expense that drains retirement savings.

Look at the stats:

• The average national cost for one year in a private room at a skilled nursing facility was $116,796 in 2023, according to Genworth’s Cost of Care Survey.
• The average Social Security benefit for retired workers was $22,983 as of April 2024, according to the U.S. Social Secu­rity Administration.
• The average 401(k) balance was $134,128 at the end of 2023, according to the in­vestment firm Vanguard.

It’s important for you to help your employ­ees understand that LTC insurance is more affordable to them during their working years than it is after. If you’re looking to fill in the gap in your employee benefits port­folio with a hybrid life and LTC insurance program that fits your bank, now is the time to work with a trusted advisor who knows the ins and outs of those benefits.

You can protect the financial future of your employees and your business with an affordable, employer-sponsored, hybrid life insurance plan that:

• Includes LTC.
• Protects their retirement plan.
• Provides an additional death benefit for working years.
• Gives them a choice about care.
• Eases the burden on their family mem­bers.
• Can include access to cash value.

What Benefits Your Employees Benefits You
Providing your employees with a well-rounded financial planning solution, like a hybrid policy, also benefits your company. Providing employees peace of mind helps maintain productivity.

Studies show that 74% percent of employ­ees feel that LTC is important, yet only 25% of their employers offer it. By offering a LTC plan, you can fill the gap in your ben­efits portfolio, making it easier to attract and retain top talent.

Planning Made Simple
Hybrid policies can be complex financial planning products. That’s why it’s impor­tant to have an expert guide you through the various options and lead the imple­mentation process.

You’ll want someone to help you find a plan and provide a benefit to your employ­ees that will protect their lifestyles and retirement plans. These programs have many advantages, including:

• Guaranteed issue life and LTC coverage.
• Spousal coverage.
• Unisex rates.
• Access to cash value.
• Dedicated account management.
• Online enrollment.
• Call center support.
• Income tax-free benefits.

Cultivating a Loyal and Engaged Workforce
In today’s competitive employment land­scape, organizations must go beyond tra­ditional compensation packages to attract and retain top talent.

Incorporating life insurance and LTC bene­fits into an employee retention strategy of­fers a range of advantages, from attracting and retaining talent to providing financial protection and flexibility. By recognizing the value of these benefits and investing in the long-term financial well-being of their employees, organizations can position themselves as employers of choice and build a loyal, engaged workforce.