Long Term Care Case Study
COSE Long-Term Care Case Study
The Long-Term Care Insurance Program through Todd Benefits Group (TBG) provides outstanding coverage and exclusive savings to COSE members and their families. The following case study demonstrates the clear advantages found through a customized long-term care policy.
John and Mary Smith have two adult children who are now actively at work with their own families. From a financial planning standpoint the Smith’s are now more concerned about the risk of expenditures for health care and protecting their assets and lifestyle. They have elected to contribute 50% of the premium towards a base plan of coverage for their four employees who are all married. John and Mary have elected to obtain coverage for themselves with the following benefits, John is age 51 and Mary is 53:
Daily Benefit (For Home Care, Assisted Living, or Nursing Home) $150
Lifetime Benefit (Bank of Dollars) $273,750
5% Simple Inflation Protection
100 Day Elimination Period (The deductible in the policy)
John’s and Mary’s base premiums in the plan are (John) $1,510.95 (Mary) $1,651.35
COSE Member Discount (Employer Paid Plan) 10% 151.10 165.13
Couple’s Discount 30% 453.00 495.41
Net Premium Payable to carrier $906.57 $990.81
Less Tax Deductibility (Assume 32% tax rate) 290.10 317.06
Final Premium Out of Pocket $616.47 $673.75
In addition to the tax savings above both John and Mary are eligible for simplified/reduced underwriting where only 6 questions will need to be answered. It is important to note that the following triple tax benefits are available as a result of the Health Insurance Portability and Accountability (HIPAA):
1. Premiums are tax deductible:
a. Employer contributions on behalf of employees premiums paid are fully tax deductible to the corporation.
b. Premiums are fully tax deductible for business owners in a C Corp.
c. Premiums paid are tax deductible up to the age based limits of HIPAA For business owners in Sub S, LLCs, LLPs and other types of corporate structures.
2. Premiums paid by the corporation are not counted towards imputed income to the employee.
3. Benefits are not taxed when used regardless of the contribution made by the employer.
Call 1-888-928-COSE to speak with Todd Benefits Group. A benefits specialist will:
- Help you design a plan to maximize the tax advantages for you business and personal needs.
- Help you determine the best underwriting strategy for you and/or your employees.
- Help you complete the application process.
- Act as your claimant advocate should you need help in the claims process.
Click here for the Todd Benefits Group’s premier interactive website for long-term care information with full enrollment and application capabilities.
COSE is your complete small business benefits partner.
For more information on COSE Health Insurance call
If you are a current member with a question, contact Member Services at (216) 592-2222 or by e-mail at memberservices@cose.org.