In a recent survey, the overwhelming majority of respondents said it would be impossible or very difficult to pay over $100,000—which is the estimated cost for one year at a nursing home (90%)—or the estimated $60,000 for one year of assistance from a paid nurse or aide. (83%).¹

Long Term Care (LTC) insurance can help cover the costs of extended care. Here are five compelling reasons to purchase LTC insurance this year:

1. Increased Life Expectancy
   While medical advances are resulting in longer life spans, they also underscore the importance of planning for health-related challenges in later years. Whether it’s due to a disability or a chronic illness like Alzheimer’s or dementia, a person turning 65 today has nearly a 70% chance of needing long-term care. Women live an average of six years longer than men, which means they’ll likely need more years of long term care.³ Investing in a policy now is a way to address your potential need for extended care down the road.
2. Rising Healthcare Costs
   Average annual costs for long-term care have risen faster than the rate of inflation over the last two decades, due primarily to increased medical costs and a shortage of care professionals.⁴ By 2030, 24 million Americans will need care, which is nearly double the current need.⁵ If costs increase as projected, a 60 year old today can expect to pay about $350,000 annually for care at age 85 when a claim is most likely to be made.⁶
   Because the need for care is often decades away, LTC insurance typically includes various inflation protection tools like automatic benefit increases, inflation protection riders, and future purchase options. By securing a policy now, you can use these tools to protect yourself from the potentially devastating financial impact of long-term care at future costs.
3. Caregiver Toll
   According to the Department of Health and Human Services, an estimated 80% of care received at home is provided by unpaid family members or friends.⁷ Those providing care often suffer from stress and burnout, not to mention the financial strain that often accompanies caregiving. One third of caregivers report that they have experienced financial challenges directly as a result of providing care to loved ones.⁸
   In many cases, long-term care insurance can compensate loved ones for care services. By investing in long-term care insurance, you’re not just safeguarding your own financial well-being, you’re also investing in the health and financial well-being of your loved ones.
4. More Choices Than Ever
   Today, you can choose from traditional plans, hybrid products, and short-term plans. While traditional LTC insurance is still the most common —and robust—option, an increasing number of alternatives have become popular among those with health conditions that might disqualify them from traditional coverage. For example, “Linked Benefit” policies are an increasingly popular way to secure both Life and LTC insurance to protect savings while ensuring benefits will be paid even if long-term care is never needed.
5. You’ll Never be Younger
   The best time to explore LTC insurance is well before you need it—when you’re young and relatively healthy. You’ll also get a better deal. LTC insurance premiums increase with age, so the younger you are, the lower your premiums will be for the life of your policy.
   Plus, chances are good that you’ll never be healthier. It’s easier to secure coverage before you develop health issues that can make getting approved difficult. As you age, you’re more likely to have a diagnosis or prescriptions that could cause you to pay more for coverage. If serious heath issues emerge, you might not be able to secure coverage at any price.

Make this the year you invest in your future well-being. While it’s impossible to know what the future may bring, it’s important to start planning while you have options. The Alumni Benefits Program offers a choice of LTC plans from leading insurers. Schedule a no-obligation appointment with an Advisor to get started.

^1,2,8 “The Affordability of Long-Term Care and Support Services: Findings from a KFF Survey,” Kaiser Family Foundation, kff.org, November 2023.
³ “When Should You Start Investing in Long-Term Care Insurance?” National Council on Aging, ncoa.org, 2024.
⁴“Facing Financial Ruin as Costs Soar for Elder Care,” New York Times, nytimes.com, November 2023.
⁵“The Ballooning Costs of Long-Term Care,” American Action Forum, americanactionforum.org, accessed February 2025.
⁶“Long Term Care Insurance Inflation Protection,” longtermcareinsurancepartner.com, accessed February 2025.
⁷“Caregiver Resources & Long-Term Care,” US Department of Health and Human Services, hhs.gov, accessed February 2025.