Partnering with leading consultants and carriers, our team has experience in designing and brokering a variety of employer-provided benefits designed to help with the Four R’s: Recruit – Retain – Reward – Retire.
Our offering encompasses these areas:
Term Life and AD&D
Disability Income Insurance
Vision & Dental
Long-Term Care (LTC) insurance
Carve-Outs and Selective Inclusion Can Enhance Economics
Our well-designed solutions emphasize economics to the business owner, utilizing carve-out plans where discrimination is permitted, and guaranteed coverages when available.
Some businesses should look into the economics of non-qualified plans. These employer-sponsored vehicles address the aforementioned four Rs while legally avoiding the restrictions, contribution limits, ERISA reporting requirements, and discrimination/coverage testing of tax-qualified retirement plans. Selectivity enhances the ability to more precisely reward key contributors, allowing them to save beyond tax-qualified plan limits.
Compelling Tax Advantage To Owners – Discrimination Permitted
An elegant way to benefit business owners is found in the company providing long-term care insurance for the owner and his/her spouse, and others on a selective basis. Employer-sponsored coverage can result in discounted pricing while benefiting from the holy trinity of tax treatment: (i) premiums fully deductible; (ii) no, or limited, (net) imputed income to the owner (insured), and (iii) no taxable income at eventual claim. This favorable tax treatment is rare, mirroring closely that of employer-provided medical insurance plans. Beyond tax advantages, the overriding rationale to employer-provided LTC coverage runs to the odds of one or both of a couple eventually needing LTC services, and the potentially astronomical costs (not covered by Medicare or Medigap policies). This is a real – if not yet present – threat to family wealth. See “Managing Another Pervasive Risk” post.