When we think about retirement planning, most of us picture 401(k)s, IRAs, or Social Security strategies. However, another critical component often gets left out: planning for long-term care (LTC). As life expectancy rises, so do the odds of needing extended care. Yet many employees approaching retirement haven’t factored these potential expenses into their financial planning.
Here’s why Life Insurance with Long-Term Care (LTC) benefits should be a foundational element of retirement conversations—and why brokers and employers should prioritize introducing it.
70% of People Over 65 Will Need Long-Term Care
That’s not a maybe—it’s a statistical reality from the U.S. Department of Health & Human Services. Whether due to chronic illness, cognitive decline, or injury, the majority of us will require some form of assistance in later life.
Unfortunately, traditional retirement strategies rarely cover these needs. Medicare offers limited support, and long-term care insurance can be costly and difficult to qualify for. That’s where hybrid life insurance with LTC riders comes in.
What Is Life Insurance with LTC?
These hybrid policies combine two powerful tools:
- Life insurance protection for your loved ones.
- Long-term care benefits cover expenses like in-home care, assisted living, or nursing homes.
The best part? If LTC benefits aren’t used, the life insurance benefit remains intact, ensuring value either way.
Why LTC Planning Is Vital to Retirement Security
1. Protects Retirement Savings
The median annual cost of a private nursing home room is over $110,000 (Genworth 2024 Cost of Care Survey). Even part-time in-home care can cost tens of thousands per year. Without a plan, these expenses can quickly drain retirement savings.
2. Offers Guaranteed Acceptance
Hybrid policies often include simplified underwriting and guaranteed issue, making them accessible even for employees with health concerns, an essential advantage as individuals near retirement age.
3. Preserves Independence and Dignity
LTC benefits provide access to care on your terms, helping retirees remain at home longer or choose the setting that fits their preferences, without relying on family or depleting their assets.
4. Dual Protection, One Policy
Even if long-term care is never needed, the life insurance benefit still pays out, providing value to heirs and peace of mind to the policyholder.
Why Employers and Brokers Should Prioritize This Benefit
Employers who include hybrid Life with LTC policies in their voluntary benefits packages demonstrate forward-thinking and genuine care for employees’ futures. For benefits brokers, it’s an opportunity to deliver a multi-generational solution directly to mid-career and pre-retirement employees.
Bonus: It’s a High-Engagement Offering
Employees in their 40s, 50s, and 60s are especially receptive to this benefit because it directly addresses a concern they already have—how to plan for care without compromising their financial freedom.
Final Thoughts: Plan Now, Protect Later
Life with Long-Term Care isn’t just insurance—it’s peace of mind in retirement. Adding this hybrid benefit to your clients’ offerings allows employees to prepare wisely for one of life’s most considerable uncertainties.
Want to help your clients secure a more complete retirement plan?
Contact The VB Shop to learn how to incorporate Life with LTC into your strategy.