Pub 10 2021 Issue 2

Sample: Male, age 55, non-smoker, in good health Sample: Male, age 55, non-smoker, in good health Initial Monthly Benefit: $6,000 Initial Monthly Benefit: $6,000 Elimination Period: 12 weeks Elimination Period: 12 weeks Benefit Period: 3 years Benefit Period: 3 years Inflation: 3% Inflation: 3% Monthly Benefit at age 80: $12,563 Monthly Benefit at age 80: $12,563 Pre-Tax Earnings 38% $5,183 Employer After-Tax Annual Cost: $2,704 Individual Annual Cost: $3,756 Employee Cost: $0 C Corporations can deduct 100% of the LTC insurance premiums as a business expenses. 2021 Eligible Premium Limits: Under age 41: $450 41 - 50: $850 51 - 60: $1,690 61 - 70: $4,520 Over 70: $5,640 Contact EBN today for a more detailed plan developed specifically for your employees. www.ebn-design.com (785) 838-9800 jjones@ebn-design.com nicole@ebn-design.com We love serving you! Please tell your friends. "Long Term Care insurance is an excellent benefit that provides an alternative to liquidating retirement assets. The peace of mind that it has given us is invaluable and the cost is fully deductible to the bank and non-taxable to the executive. I’m glad that EBN brought it to our attention. EBN has been great to work with." Robert Leftwich, CEO Impact Bank S Corporations, Partnerships, and LLCs can deduct 100% of the LTC premium up to the eligible premium limit. An employee with no ownership pays no income tax. Purchasing LTC Insurance Individually Providing LTC Insurance Through an Employer The "Triple Tax Advantage" of Long Term Care Insurance Long term care insurance is a valuable benefit that can be provided at little cost to the employer to retain and reward top executives and their spouses . The benefit is entirely portable . It can be paid for until the employee's retirement at which point the policy can be transferred over to the employee, or the policy can continue to be provided by the employer as a post-retirement benefit. Additional Tax Benefits: Long Term Care Insurance that is provided through a business is one of the only discriminatory benefits that provides a Triple Tax Advantage : 1. The company can deduct the LTC premiums as a business expense. 2. The employee does not pay income tax on the LTC premiums. 3. When long term care benefits are paid on behalf of the employee, the benefits are not taxable.