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How Consumers Prefer to Cover Long-Term Care Costs

How Consumers Prefer to Cover Long-Term Care Costs

How Consumers Prefer to Cover Long-Term Care Costs

It’s a fact—consumers prefer long-term care riders to stand-alone long-term care (LTC) insurance.

In 2018, 350,000 Americans bought long-term care insurance.¹

84% chose linked-benefit coverage. In other words, their LTC insurance was a rider on a life insurance policy or another financial vehicle.

Only 16% chose stand-alone LTC insurance.

If you had to guess why riders won out, what would you say?

  • Because LTC riders are often far more affordable than stand-alone insurance?²

  • Because LTC riders aren’t subject to steadily increasing premiums?³

  • Because stand-alone LTC insurance is growing harder and harder to qualify for?⁴

If you guessed any of the above, you’d be right! They’ve all contributed to the rising popularity of LTC riders.

For many, LTC riders are a no-brainer. If something’s more affordable, easier to qualify for, and less subject to change, wouldn’t you prefer it, too? And considering that 70% of people age 65 and older will need LTC, it’s a form of financial protection everyone should explore.⁵

That’s not to say an LTC rider is the perfect solution for your situation. If you don’t need permanent life insurance, then a stand-alone policy may be the way to go. That’s why it’s critical to meet with a licensed and qualified financial professional—they can evaluate your situation and what tools and strategies best meet your needs.

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This article is for informational purposes only and is not intended to promote any certain products, plans, or policies that may be available to you. Any examples used in this article are hypothetical. Before enacting a savings or retirement strategy, or purchasing a life insurance policy, seek the advice of a licensed and qualified financial professional, accountant, and/or tax expert to discuss your options.


¹ “Long-Term Care Insurance Facts - Data - Statistics - 2019 Report,” American Association for Long-Term Care Insurance, Nov 2019, https://www.aaltci.org/long-term-care-insurance/learning-center/ltcfacts-2019.php

² “Should I add a long-term care rider to my life insurance policy?” Nupur Gambhir & Rebecca Shoenthal, PolicyGenius, Jan 25, 2022, https://www.policygenius.com/life-insurance/long-term-care-rider/

³ “Should I Buy Life Insurance With a Long-Term Care Rider?” Sterling Price, ValuePenguin, Mar 14, 2022, https://www.valuepenguin.com/life-insurance-long-term-care-rider

⁴ “Knowledge Tracker: The Collapse of Long-Term Care Insurance,” Alexander Sammon, The American Prospect, Oct 20, 2020 https://prospect.org/familycare/the-collapse-of-long-term-care-insurance/

⁵ “How Much Care Will You Need?” LongTermCare.gov, Feb 18, 2020, https://acl.gov/ltc/basic-needs/how-much-care-will-you-need