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Long Term Care Coverage as an Executive Benefit

/// Posted by Aviva Sapers

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We are living and working longer than the generations that came before, but the strength of Social Security and the retirement options afforded to our parents are not what they used to be. Retirement savings, which are mostly our own, have become more important than ever to maintain quality of life in our later years—and the largest potential risk to those hard-earned savings is the ever-looming cost burden of a long-term illness.

According to government estimates, about 60% of US citizens will need some form of long-term care (LTC) assistance at some point in their lives. The costs associated with LTC are expected to continue to grow. To compound the retirement savings problem, the American workforce is currently undergoing what many have dubbed, “The Great Resignation,” with talent retention and acquisition among companies having become what Forbes is calling “the new CEO obsession in the back half of 2021.”

Against this backdrop, offering executive benefits, like Long Term Care, that are not standard fare, may be one of the smartest and unique additional benefits used for attracting top talent. Traditional LTC coverage is often viewed as expensive, and as a result, many people choose not to buy it. However, if a company could foot the bill, obtain a deduction, and offer the non-taxable benefit to the executive—wouldn’t that be attractive?

For business owners and executive teams, 10-Pay Long Term Care Programs have become a popular and creative executive benefit. Specifically designed for businesses to provide key executives with portable LTC insurance policies, these limited ten-pay policies can act as a powerful benefit to attract top talent and protect retirement plans for executives and their spouses from potential healthcare costs.

Premiums for these 10-Pay LTC Programs are fully deductible for C-Corporations or for executives of S-Corps or partnerships who are not owners or greater than 2% partners. Premiums are also not considered taxable income for the executives, and if used, the benefits paid are also tax free—making these policies a triple tax-advantaged benefit.

These new LTC products, and other evolving solutions help tackle both the increasing costs of LTC and growing concerns around attracting top talent. We are here to consult with you on creative executive benefits like LTC insurance and other options to determine which are best suited for your organization. Please reach out to us to find out more.

Securities offered through Lion Street Financial, LLC (LSF), member FINRA/SIPC. Investment advisory services offered through Lion Street Advisors, LLC (LSA). LSF and LSA are not affiliated with Sapers & Wallack.

Variable life insurance is sold by prospectus. Please consider the investment objectives, risks, charges, expenses, and your need for death-benefit coverage carefully before investing. The prospectus, which contains this and other information about the variable life policy and the underlying investment options, can be obtained from your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.

The investment return and principal value of the variable life policy are not guaranteed. Variable life sub-accounts fluctuate with changes in market conditions. The principal may be worth more or less than the original amount invested when the policy is surrendered. Contract surrender charges may also apply.

Contact us for further information about Long Term Care coverage.

 

Podcast Q&A: Cybersecurity: Is It Worth It?

/// Posted by Ellen Bohn Gitlitz

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Ellen Bohn Gitlitz answers questions about our October blog.

Over a year ago, near the start of the pandemic, I wrote a blog about the importance of cybersecurity insurance amid the uptick of hacking and cyber ransom attacks on corporations of all sizes. I spoke then about how the Black Swan disruption of COVID had driven so much of global business online, which had in turn offered heightened opportunity for hackers, fraudsters, and thieves across the globe to have unleashed their arsenals toward exploiting any weakness. I would love to be able to say that we have since turned a corner—but I can’t.

Listen to my podcast to find out more.

Cybersecurity: Is It Worth It?

/// Posted by Ellen Bohn Gitlitz

///

Over a year ago, near the start of the pandemic, I wrote a blog about the importance of cybersecurity insurance amid the uptick of hacking and cyber ransom attacks on corporations of all sizes. I spoke then about how the Black Swan disruption of COVID had driven so much of global business online, which had in turn offered heightened opportunity for hackers, fraudsters, and thieves across the globe to have unleashed their arsenals toward exploiting any weakness. I would love to be able to say that we have since turned a corner—but I can’t.

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Where You Get Your Care Matters

/// Posted by Scott Mathieu

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Before I became Sales Director for Hilb Group of New England, I spent years working directly for a large insurance carrier. I have looked at a lot of health care data throughout my career and have taken well over a hundred meetings with companies for direct review of their health care plans and outcomes. Believe me when I tell you that not all health care providers are created equal.

Whether you’re shopping as an individual or working on the HR side of your company benefits plan, doing the research and working with advisors who understand the stakes can not only save money and but also add immensely to the quality of life for you and your employees. Quality health care ends up costing less for you and the members of your health plan—with less bad outcomes, less complications, less side effects, and less redo’s.

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Podcast Q&A: Where You Get Your Care Matters

/// Posted by S&W

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Scott Mathieu answers questions about our September blog.

Whether you’re shopping as an individual or working on the HR side of your company benefits plan, doing the research and working with advisors who understand the stakes can not only save money and but also add immensely to the quality of life for you and your employees – listen to the podcast to find out more.

It’s Time For Your Life Insurance Checkup

/// Posted by Scott Tuxbury

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September is National Life Insurance Awareness Month, so it’s a great time to review your coverage.*

If you don’t have any life insurance, you’re not alone. Life insurance is one of those “someday” things for many people – but the cheapest time to buy it is probably today.

There are two kinds of life insurance: term and permanent. Additionally, there are three kinds of permanent life insurance: whole, universal, and variable.

How do these forms of life insurance differ, and how do you find out which type of coverage is right for you? Ask us!

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/// Posted by Aviva Sapers & Ken Vacovec

This blog is co-authored by Aviva Sapers, CEO of Sapers & Wallack,  and Kenneth J. Vacovec, Founding Partner of Vacovec, Mayotte & Singer.

For many Green Card holders or US citizens who own property or assets abroad, the eventual estate taxes that will be due on those holdings can be significant and even prohibitive if not planned for accordingly. One, often overlooked, technique for addressing this problem is to use a life insurance policy to cover the taxes on those assets when they are added to the estate held in the US.

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Aviva Sapers, CEO & President at Sapers & Wallack, and Ken Vacovec, Founding Partner of Vacovec, Mayotte & Singer, answer questions about our July blog.

For many Green Card holders or US citizens who own property or assets abroad, the eventual estate taxes that will be due on those holdings can be significant and even prohibitive if not planned for accordingly – listen to the podcast to find out more.

How to Utilize Technology Tools to Boost Financial Wellness

/// Posted by Holly Knight

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Stress is likely the largest contributor of health issues and loss of productivity at the workplace in America—and an estimated 84% of stress is derived from financial problems. That equates to huge financial ramifications for businesses of all sizes. A recently conducted Salary Finance survey found that American businesses are losing as much as 500-billion-dollars a year due to personal employee financial stress. That isn’t just alarming, it’s a national crisis that requires bold, proactive change to address it. Luckily, some of the tools to shift how our employees confront and work through personal financial stress already exist—all that’s missing is the focus and directive to know how to use them.

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Holly Knight, Director of Retirement Outcomes at Sapers & Wallack answers  questions about our June blog, How to Utilize Technology Tools to Boost Financial Wellness