As a benefits broker, you know that accurate, compelling data builds trust. Let’s start with the numbers:
According to Genworth’s 2024 Cost of Care Survey:
- $77,792 — annual median cost for an in-home health aide
- $111,325 — annual median cost for a semi-private room in a nursing home
- $127,750 — annual median cost for a private room in a nursing home
These figures are climbing. Home health aide costs rose roughly 3% from 2023. Private nursing home rooms jumped about 9%. Assisted living saw one of the largest hikes—up 10% to $70,800 annually.
The Human Toll Behind the Dollars
Many Americans mistakenly assume Medicare covers most long-term care needs. In reality, Medicare excludes most non-medical services, like help with bathing or dressing. Medicaid will only step in after significant asset spend-down—often forcing individuals to deplete savings and retirement accounts.
Beyond the numbers, the emotional and financial strain often falls on family caregivers—particularly the “sandwich generation.” The burden can be life-altering: long-term care can average around $111,000 per year, and half of caregiving mothers have left the workforce to provide care.
Life Insurance with Long-Term Care Rider: A Smart, Compassionate Solution
Given these realities, Life Insurance with a Long-Term Care (LTC) rider offers tangible benefits for both employers and employees:
- Dual Value – Whether benefits are paid for care or as a life insurance payout, the policy delivers guaranteed value.
- Predictable Costs – More stable premiums compared to standalone LTC insurance, with simplified underwriting or guaranteed acceptance in many cases.
- Portable & Flexible – Coverage stays with the employee, even if they change jobs.
- Savings & Liquidity – Many policies build cash value over time, accessible in emergencies.
Why Employers Should Pay Attention
In today’s competitive job market, offering a hybrid Life + LTC benefit can help employers:
- Protect employees and their families during critical life events.
- Demonstrate a forward-thinking benefits strategy.
- Support retention and recruitment in industries where caregiving burdens are common.
The Bottom Line for Benefits Brokers
- Costs are rising — care expenses grow every year.
- Misconceptions persist — many overestimate Medicare/Medicaid coverage.
- Families shoulder the burden — emotionally and financially.
- Life with LTC is a smart alternative — providing protection, predictability, and portability.
If you want to present a modern, impactful solution to your clients, Life Insurance with a Long-Term Care benefit checks all the boxes. And if you need support or tailored messaging, The VB Shop can help you deliver it.
Sources:
- Genworth. 2024 Cost of Care Survey. January 2024.
- Larson Brown. “2024 Cost of Care Trends.” May 2025.
- U.S. Department of Health & Human Services. LongTermCare.gov.
- MarketWatch. “A majority of Americans are making a big mistake when it comes to long-term care.” 2024.
- Investopedia. “The Hidden Retirement Cost.” 2024.