As employers, banks want to provide their staff with quality benefits offerings. An area that is often overlooked is long-term care (LTC) insurance. This product is usually quite expensive and difficult to obtain. Unfortunately, roughly 56% of Americans will need LTC at some point in their lifetime. The IBA is glad to announce that we have endorsed a new Preferred Service Provider that will offer LTC insurance to bank employees through an IBA LTC Group, with the assistance of NFP.
NFP — a leading provider of risk, benefit, wealth and retirement plan advisory services — offers specialized expertise and customized solutions across various insurance and benefit landscapes, worldwide. They have created this opportunity through a universal life insurance product that includes an LTC rider, underwritten by Trustmark, a recognized carrier in the market.
If you have dealt with aging parents or loved ones, you know long-term care costs are expensive and continue to rise, with current annual costs ranging from $26,000 to over $127,000. Just a private room in a nursing home is projected to exceed $579,000 annually by 2055. A company-sponsored “hybrid” life insurance product with an LTC rider offers robust coverage, underwriting concessions and additional benefits. NFP’s platform can enroll these products through a high-quality process with a minimum amount of impact on the resources of your HR department.
Long-term care services consist of qualified care received in a facility or at home for treatment of cognitive impairment or the loss of two or more daily-living activities, including dressing, restroom usage, transferring to and from bed or wheelchair, eating, continence or bathing. Without a plan employees (or their family) often bear the burden of assisting with these tasks for their loved ones. A long-term care benefit can help in minimizing the future need of a family member having to assist your employee with these activities.
The “hybrid” product is a solution that offers bank employees a universal life insurance product in the amount of $100,000 with a LTC rider that may include additional benefits that can total $300,000 in total value. This product has the underwriting advantage of a guaranteed issue (i.e., no medical questions) if an employee purchases the product within a specific timeframe. Your employees will also benefit from pricing advantages that come from the product being part of the established IBA LTC Group.
If this is a product you would like to consider offering to your employees — at no cost to the bank — or would like to learn more about, contact Todd Andritsch at [email protected], or me at [email protected].
