As a benefits broker, you constantly seek innovative solutions that provide real value to your clients. With the rising cost of healthcare and an aging workforce, Life Insurance with Long-Term Care (LTC) benefits has become a game-changer. This hybrid solution meets employees’ needs at every stage of life while helping employers stand out in today’s competitive job market.
Here’s why Life with LTC is a strategic offering that benefits brokers should be introducing to clients now.
Why Life with LTC is an Essential Benefit
Guaranteed Issue – Coverage for All Employees
One of the most significant advantages of Life Insurance with LTC is its Guaranteed Issue feature. Unlike traditional long-term care policies requiring medical underwriting, many hybrid policies offer guaranteed acceptance, ensuring all employees qualify for coverage, regardless of their health history. This removes one of the most significant barriers for employees struggling to secure coverage due to pre-existing conditions.
The Rising Cost of Care: Why Employees Need Protection
Long-term care is no longer a concern just for retirees—employees of all ages need to plan for potential care expenses. The latest Genworth 2024 Cost of Care Survey reveals just how expensive care has become:
- $77,792/year – The median cost for an in-home health aide
- $111,325/year – The cost of care in a nursing home
- $127,750/year – The cost of a private room in a nursing home
- $367,000 – The estimated cost for care in the final five years of life for a person with dementia (Alzheimer’s Association)
- $172,000 – The average lifetime long-term care cost per person (SHRM HR-Magazine)
Given these staggering figures, it’s clear that employees need an affordable way to prepare for potential care needs without draining their savings. That’s where Life with LTC comes in.
Why Employees of Any Age Choose Life with LTC
This hybrid policy isn’t just for older employees—it’s a financial planning tool that benefits workers at every stage of life.
Ages 20-39: Locking in Low Rates & Building Financial Security
Younger employees often overlook long-term care but stand to gain the most from starting early. Life with LTC allows them to:
- Lower premiums – Young employees secure the most affordable rates.
- Cash value accumulation – Policies build value that can be accessed in an emergency.
- Early planning advantage – Preparing now means avoiding high costs later.
Ages 40-49: Balancing Retirement Planning & Family Security
- Stable premiums – Locking in rates now prevents future cost increases.
- Financial security for families – Life insurance benefits protect loved ones.
- Emergency access – Policies provide cash value that can be tapped into.
Ages 50+: Addressing Long-Term Care Needs Before It’s Too Late
- Guaranteed acceptance – No medical underwriting means pre-existing conditions won’t disqualify employees.
- Immediate access to benefits – Employees are more likely to need LTC services sooner rather than later.
- Dual-purpose coverage – Even if LTC isn’t used, the life insurance benefit remains.
Why Employers Should Offer Life with LTC
For employers, offering Life with LTC provides the following:
- A high-value benefit that meets the needs of employees at all life stages.
- A way to attract and retain talent in a competitive job market.
- Financial protection for employees without added costs to the business.
With 70% of the workforce likely to need long-term care, forward-thinking employers who provide this benefit will be seen as proactive and supportive.
Why Brokers Should Prioritize Life with LTC Now
As a benefits broker, your clients look to you for cost-effective, high-value solutions. Life Insurance with LTC benefits:
- Provides guaranteed benefits—either through life insurance or long-term care coverage
- Offers stable premiums, unlike standalone LTC insurance, which often sees significant cost increases
- Simplifies underwriting, making it accessible to more employees
- Creates a multi-purpose financial asset that grows over time
Educating your clients on the advantages of Life with LTC, you help them provide a truly valuable benefit to their workforce while differentiating their offerings.
Final Thoughts: A Win-Win for Employees & Employers
Life Insurance with LTC benefits is a must-have in today’s benefits landscape. With Guaranteed Issue, coverage is accessible to more employees than ever, regardless of health history. Employees gain financial security and flexibility, while employers enhance their benefits packages to attract and retain top talent.
As a broker, you have a unique opportunity to introduce your clients to this powerful hybrid solution.
Want to learn more? Contact The VB Shop today to explore how Life with LTC can strengthen your clients’ benefits strategies.