Long-Term Care Insurance

An Introduction to Long-Term Care:

What is long-term care (LTC)?

Custodial care received in a nursing home, an assisted facility, or at home. These needs may include:
Help with 2 or more activities of daily living:
  • Dressing
  • Eating
  • Transferring
  • Continence
  • Toileting
  • Bathing

— OR —

Supervision due to Cognitive Impairment such as Alzheimer’s or Stroke.

Common reasons people need LTC:

  • Illness: Cancer, Stroke, or Heart disease
  • Injury: Bone fracture or Spinal cord injuries
  • Aging: Natural aging, Alzheimer’s, or Dementia

What is the probability of needing LTC?

7 out of 10 sixty-five year olds will need some type of LTC services during their lifetime. ₁

If I have an LTC event, what age might that event occur?

The average LTC claim is made at age 83, although LTC events can happen anytime. ₂

For claims lasting more than 1 year, the average LTC claim lasted 3.9 years. ₃

How Caregiving can impact loved ones ₄


of caregivers said the long-term care event negatively affected their health and well-being.


of caregivers said they had to take away time from work


of families are helping to cover the cost for situations where professional care is received at home.


of caregivers did not feel qualified to provide physical care.


of caregivers report having less time for their spouse/partner, their children, and themselves.

Understand Your Long-Term Care Options:

You have options when it comes to Long-Term Care. When reviewing the possibilities, keep these Key Features in mind:

  • LTC Leverage – power of premium dollars to generate LTC benefits
  • Legacy Protection – ability to protect wealth if LTC event never occurs
  • Flexibility – ability to access and transfer money


+ No medical exam required
+ Maximum control and liquidity
+ Convenience

– No leverage on assets
– Relies on account performance
– Often insufficient for long-lasting LTC events
– Vulnerable to reduced buying power due to inflation
– Liquidating funds may cause tax consequences

• Desires maximum control and access to funds
• Skeptical of need for insurance coverage and/or has an aversion to medical underwriting
• Concerns about flexibility and freedom are more important than the potential negative impact self-funding may have on the legacy left for loved ones

Self-Funding is most Flexible

Traditional LTC Insurance

+ Generally provides the most affordable coverage
+ Significant customization
+ Inflation protection available
+ Offers shared care benefit (allows spouses to tap into each other’s benefits under special circumstances)

– Premiums are not guaranteed, are subject to rate increases, and are generally required for life
– Have no tangible cash value
– “Use it or lose it” (no benefits are paid if the insured does not have an LTC event)
– Requires full underwriting

• Seeks the most affordable option
• Currently has sufficient life insurance coverage in place
• Desires ability to fully customize LTC coverage (elimination periods, inflation protection, shared care, etc.)

Traditional LTC ranks highest in LTC Leverage

Hybrid LTC

+ Guaranteed premiums
+ Guaranteed liquidity
+ Flexibility – provides LTC benefits, death benefit, or a return of premiums
+ Inflation protection and zero-day
elimination period available
+ Simplified underwriting

– Requires limited-pay design
– No shared care benefit

• Desires the highest available leverage with respect to guaranteed LTC benefits with the certainty of guaranteed premiums
• Does not necessarily need additional death benefit protection, but is concerned about paying for and never receiving any benefit
• Prefers a lump sum or limited-pay funding structure

Hybrid LTC carries Leverage AND Flexibility

Life Insurance

with a Living Benefits Rider

+ Guaranteed premiums
+ Potential for tangible cash value
+ Guaranteed death benefit

– No inflation protection
– No shared care benefit
– Receipt of LTC benefits reduces the
death benefit
– Requires full underwriting

• Has a need for additional life insurance protection and an interest or desire to address LTC coverage
• Prefers the convenience and administrative efficiency of satisfying both life and LTC insurance needs within a single solution

Life Insurance ranks highest in Legacy Protection

(with a Living Benefits Rider)

Ready to Connect with an advisor?


₁ Genworth Cost of Care Survey (2019) – Sourced from https://www.genworth.com/aging-and-you/finances/cost-of-care.html 

₂ American Association for Long-Term Care Insurance, 2019 LTCi Sourcebook

₃ LTC Tree (2018) – Sourced from https://www.ltctree.com/long-term-care-statistics/

₄Genworth (2018) – How Caregiving Impacts Families, Communities and Society


The material contained herein is for informational purposes only and is not intended to provide specific advice or recommendations for any individual nor does it take into account the particular investment objectives, financial situation or needs of individual investors. Individuals are advised to seek the advice of a qualified professional before pursuing any idea contemplated herein.

For more details about these LTC protection options, please consult with a qualified professional as well as any available resources including product materials, contracts,and/or prospectuses, if applicable.

These materials contain information about the features, risks, charges and expenses of each option. Please consider this information carefully. Solution availability and features may vary by state.

Guarantees are based on the claims-paying ability of the issuing company.