The need for long term care insurance is growing as baby boomers continue to age. Fortunately, the federal tax code was changed to encourage individuals to purchase LTC coverage and for employers to offer LTC coverage to their employees.

The business can deduct the full premium paid for long term care coverage on behalf of its employees and their spouses and dependents. This includes shareholder-employees of C corporations.

Owners of LLCs, sole proprietorships, partnerships and two percent shareholders of S corporations also enjoy significant tax benefits on company-paid premiums for their own policies.

Business owners can designate or "carve out" specific classes of employees that will be covered with long term care insurance.

In many cases, electing a 10-pay or Paid-up by 65 premium payment option allows premiums to be fully paid by retirement.

Return to the general discussion of Employee Benefits.