Long-Term Care Executive Carve-Out

Long-Term Care Executive Carve-Out  

Overview

Your firm can help its partners and other key employees who are MSBA members protect their lifestyles and retirement portfolios with Executive Carve–Out Long Term Care Insurance. Not only does it offer your firm an innovative tool for rewarding and retaining top attorneys as well as provide tax advantages, it also gives a valuable and meaningful benefit to your top employees. 
For more information regarding Long Term Care options for your firm:

Tell Me More

A LTC Executive Carve-Out brings customized long-term care insurance to your partners or other key employees and provides tax advantages to your firm.

By establishing predetermined criteria for these benefits, you are able to legally segment a class of employees eligible to have long-term care insurance premiums paid by the firm.

Benefits for partners/key employees

  • Protection of their 401(k) or retirement plan assets
  • Lifestyle protection
  • Portable coverage
  • Favorable tax treatment—benefits are generally tax-free
  • Access to health care advocacy (managing and advising family members about health and welfare)
  • Creates expense account for extended health care


Benefits for Firms/Employers

  • Flexibility to select key executives without violating anti-discrimination laws
  • Plans can include owner-employees, spouses, and dependents
  • 100% tax deduction on premiums paid for employees and their spouses (IRC, Section 162)
  • LTC insurance can attract, retain and reward key employees
Contact Us

For more information regarding Long Term Care options for your firm, contact:

 Address
John Collentine
333 S. 7th Street
Suite 1600
Minneapolis, MN 55402
 Phone
1-612-692-7655
 Fax
1-866-715-0997
 Cell
1-612-247-4166
 Email
John.T.Collentine@mercer.com

 

If you are looking for more information about individual Long Term Care Insurance, please call 1-800-501-5776.

FAQs

Answers about the program, including eligibility, options, customer service and more.
  • Why would my firm want to offer Long Term Care Executive Carve-Out?

    Higher pay is not the only answer to compensation issues inside a law firm. Supplemental benefit programs can be an effective way to create added value for firms to recruit, reward and retain the top talent of the firm, while gaining a tax advantage for your firm: 100% of the premiums paid for employees and their spouses can be deducted, according to IRC, Section 162.

  • What are the benefits to our firm?

    In addition to receiving a 100% tax deduction on premiums paid for employees and their spouses, an LTC Executive Carve-Out offers your firm the flexibility to reward top partners/key employees.

  • Why would our key partners be interested in a Long Term Care Executive Carve-Out?

    Research shows that most people are not prepared to cover the rising costs of long term care—or manage the complex details associated with long-term care.

    Your top partners or other key employees have savings, assets and other wealth that will need protection from potential long term care costs. The LTC Executive Carve-Out helps preserve their retirement plan and other assets, while offering portable coverage and favorable tax treatment.

  • What is the Health Care Advocacy Benefit?

    With the Mercer Consumer LTC Executive Carve-Out, your partners and other key employees will have access to a Health Care Advocacy Team, who will help them make decisions about their health and welfare. The Team consists of nurses who can answer questions and assist in choosing how and where your employees will receive long term care services if and when the need arises. This Team gives them peace of mind knowing other family members won’t have to worry about making decisions for their care.

Mercer's Role & Compensation

Details of Mercer disclosure of the compensation.