The Hidden Value of C-Corporations Purchasing Long-Term Care Insurance
When business owners consider the benefits their corporation can provide, health insurance, retirement plans, and performance bonuses usually top the list. But one of the most overlooked opportunities—particularly for C-Corporations—is the ability to fund long-term care (LTC) insurance for owners, employees, and even their spouses.
This strategy not only enhances the financial security of those covered, but it can also deliver meaningful tax advantages to the corporation—especially when compared to the rising costs of long-term care across the United States.
Why Long-Term Care Insurance Matters
Long-term care insurance covers services that traditional health insurance and Medicare often exclude—such as assistance with daily living activities or care in a nursing facility. With costs escalating nationwide, proactive planning is critical.
National median costs for care in 2025:
- Semi-private nursing home room: approximately $9,277 per month ($111,325 annually)
- Private nursing home room: approximately $10,646 per month ($127,750 annually)
These figures underscore why LTC coverage has become an essential component of financial and estate planning.
The C-Corporation Advantage
C-Corporations enjoy a distinct edge when it comes to providing long-term care insurance. Unlike S-Corporations, partnerships, or sole proprietorships, a C-Corp can fully deduct the premium cost of tax-qualified LTC insurance for its owners, employees, and their spouses.
Key advantages include:
- Fully deductible premiums – The corporation can treat LTC premiums as a business expense, reducing taxable income.
- Tax-free benefit to recipients – Covered individuals receive the benefit without imputed income.
- Customizable coverage – The company can choose who to cover—owners, executives, or key employees and spouses.
- Dual protection – The business gains a deduction, while individuals receive valuable, tax-efficient protection.
A Win-Win for Business and Families
For owners, using corporate resources to secure personal long-term care protection can be a strategic and tax-savvy move.
For employees, adding LTC insurance to your benefits package demonstrates a deeper commitment to their well-being and long-term financial security— which can strengthen loyalty and retention.
Strategic Planning Tips
- Act early – Premiums are typically lower for younger, healthier applicants.
- Consider hybrid policies – Life insurance with LTC riders can offer flexibility and optional death benefits.
- Integrate LTC into broader planning – Align LTC coverage with your tax, succession, and retirement strategies for maximum efficiency.
Final Thoughts
With national nursing home costs exceeding $110,000 per year, long-term care insurance isn’t a luxury—it’s a financial safeguard.
For C-Corporations, offering LTC coverage to owners, employees, and their spouses isn’t just generous—it’s strategic. It transforms ordinary business expenses into lasting protection for your most valuable assets: your people and their families.
Let’s discuss how we can align your corporate benefits and tax strategy to make long-term care coverage a meaningful part of your financial plan. I can coordinate with your current Brady Martz CPA to design an approach tailored to your goals and specific circumstances.
Sources:
https://www.aplaceformom.com/caregiver-resources/articles/nursing-homes-cost
Securities are offered through Valmark Securities, Inc. Member FINRA, SIPC, Valmark Securities, Inc. is a broker dealer registered with the US Securities and Exchange commission. Brady Martz & Associates, P.C., Brady Martz, LLC, Brady Martz Wealth Solutions, LLC. and Brady Martz Insurance Solutions, LLC. are separate entities from Valmark Securities, Inc. Brady Martz Insurance Solutions, LLC is a separate entity from Brady Martz & Associates, P.C., Brady Martz, LLC, and Brady Martz Wealth Solutions, LLC.
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