Business Benefits
 

There are several benefits for businesses offering Long Term Care Insurance (LTCI ) to their employees.  These are broken up by corporate type. For a C Corp they are:

• Deduct premiums paid as a business expense
• Employers contribution not counted as income
• Income exclusion extends to spouses of employees
• Board members that are paid can be treated like employees
• Executive carve outs are encouraged
• Return of premium feature can be passed to heirs without taxes

S Corps have their own rules.  If the employee or shareholder owns less than 2% of stock and is not a partner:

• Same rules as for a C corp

S Corp where employee or shareholder owns more than 2% of stock or is a partner:

• Premiums paid by the corporation are deductable by the company as long as the company doesn’t retain an interest in the policy
• Premiums paid by the corporation are part of gross income

Self Employed:

• Premiums paid are deductable as a business expense the same as individuals

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