What’s the Latest on the Long-Term Care Front?

What’s the Latest on the Long-Term Care Front? Episode 376 – With seemingly everything related to health care, the cost of long-term care keeps going up, which may eat into your savings if needed. What are your options to hedge that risk? More SML Planning Minute Podcast Episodes Transcript of Podcast Episode 376 Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode: what’s the latest on the long-term care front? Long-Term Care, or LTC as we will often refer to it in this podcast, is a set of services designed to help people who are no longer able to perform everyday personal tasks on their own. These services are designed to help people out with what are called the “Activities of Daily Living,” such as bathing, dressing, eating, etc. People very often need LTC help later in life due to chronic illness, disability or cognitive issues such as Alzheimer’s. The estimate is that 60 percent of Americans will eventually need help with things like “getting dressed, driving to appointments, or making meals,” according to the U.S. Department of Health & Human Services.[1] Medicare coverage only goes so far when it comes to LTC. Through Medicare parts A & B, skilled nursing care generally runs out after 100 days.[2] Without supplemental coverage, you’re on your own after that. As you might expect, the cost of care varies greatly depending on what type of need you have and where you live. Overall, the cost of LTC has been going up for decades and shows no sign of stopping. In 2025, the average annual cost of assisted living was approximately $73,000,[3] while the average annual cost for a private room in a nursing home was approximately $137,000.[4] How long is “long term?” The average nursing home stay is 485 days, or about 16 months.[5] But 28.5 percent of those who need care—whether in a nursing home or not—will need it for more than five years.[6] Finding a way to protect yourself against the rising cost of LTC is quite a challenge, and there are several different types of LTC insurance. Some people associate LTC insurance with nursing home care, but it also encompasses home health care. It stands to reason that most seniors, if given the choice, would prefer staying at home to moving into a form of nursing facility. So, in general, LTC insurance often covers things like homemaker services, skilled nursing care, and personal care services performed in the home. Because it’s so expensive, many individuals will choose to insure against LTC expenses. But where do you begin? It can be a confusing journey. Here are some of the options people have: A “standalone” LTC policy. An LTC policy could be likened to car insurance or most term life insurance policies. That is, you pay premiums to protect yourself from adverse developments, and the premiums may increase over time. If you never have a claim, that money is essentially gone. With a permanent life insurance policy, you pay for a product that may result in cash value access for expenses during your lifetime, and return a benefit to heirs when you eventually pass.   The number of major companies offering standalone LTC policies has dwindled to just a handful in the last few years.[7] One reason for this is the significant amount of inflation that has occurred when it comes to health care expenses. A standalone policy is subject to unpredictable premium increases every year, and over time, the cost can end up being significantly higher than the initial premium. Another reason is that, through positive medical developments, people are living longer, requiring carriers to pay long term care claims for longer than their products have historically been priced for. A life insurance policy with an LTC rider. Some life insurance companies will offer an LTC rider to their life insurance policies. This is an optional add-on feature that comes at a cost, with the amount varying from company to company. This option is primarily used for people who need life insurance. Every dollar paid out by the LTC rider will reduce the remaining death benefit to heirs. While costs may still be significant, if the LTC rider is never used, there is still that death benefit to heirs, helping to justify the total cost. Chronic illness rider. Some insurance companies offer an alternative: a chronic illness rider. In general, a chronic illness rider allows the insured to get early access to their policy’s death benefit when they are faced with a chronic illness, that is, any illness from which they are not expected to recover from during their lifetime. As with an LTC rider, chronic illness rider use would reduce the policy’s death benefit when you eventually pass.   Many companies offer a chronic illness rider at no additional premium cost. And if you need to use the benefit, it is generally tax-free. If you don’t use it, your full death benefit remains available. Self-insurance. This is always an option. You could simply pay the costs out of your own resources. The problem is that future costs could become astronomical, causing you to run out of money. If you end up never needing any form of long-term care though, you would theoretically be better off… But is it worth the risk? Getting old is typically never easy and long-term care is just one piece of the puzzle to consider, along with Medicare supplements, health care directives, powers of attorney, etc. Rising health care costs have made the puzzle much more difficult to solve and spending quality time to carefully consider the risks as they pertain to your individual situation is important. The sooner you start planning, the better. And as you move forward, involving a qualified legal representative well-versed in long-term care as well as national laws and the laws in your state which can vary, is highly recommended. [1] U.S. Department of Health & Human Services. “What is Long-Term Care (LTC) and Who Needs it?” LongTermCare.gov. https://acl.gov/ltc (accessed February 20, 2026). [2] Medicare Interactive. “SNF care past 100 days.” Medicareinteractive.org. https://www.medicareinteractive.org/understanding-medicare/medicare-covered-services/skilled-nursing-facility-snf-services/snf-care-past-100-days (accessed February 23, 2026). [3] Rosenblatt, Bruce. “The Cost of Assisted Living in 2025: What You Need to Know.” Seniorhousingsolutions.net. https://seniorhousingsolutions.net/the-cost-of-assisted-living-in-2025-what-you-need-to-know/ (accessed February 23, 2026). [4] American Council on Aging. “2026 Nursing Home Costs by State and Region.” Medicaidplanningassistance.org. https://www.medicaidplanningassistance.org/nursing-home-costs/ (accessed February 23, 2026). [5] Wisner, Wendy. “How long is the average nursing home stay?” Care.com. https://www.care.com/c/average-nursing-home-stay/ (accessed February 23, 2026). [6] Kujala, Jacob. “The Changing Landscape Of Long-Term-Care Insurance.” Financial Advisor. https://www.fa-mag.com/news/the-changing-landscape-of-long-term-care-insurance-84943.html (accessed February 23, 2026). [7] Knueven, Liz. “The best long-term care insurance companies of February 2026.” cnbc.com. https://www.cnbc.com/select/best-long-term-care-insurance/ (accessed February 23, 2026). More SML Planning Minute Podcast Episodes This podcast is brought to you by Security Mutual Life Insurance Company of New York, The Company That Cares®. The content provided is intended for educational and informational purposes only. Information is provided in good faith. However, the Company makes no representation or warranty of any kind regarding the accuracy, reliability, or completeness of the information. The information presented is designed to provide general information regarding the subject matter covered. It is not to serve as legal, tax or other financial advice related to individual situations, because each individual’s legal, tax and financial situation is different. Specific advice needs to be tailored to your situation. Therefore, please consult with your own attorney, tax professional and/or other advisors regarding your specific situation. To help reach your goals, you need a skilled professional by your side. Contact your local Security Mutual life insurance advisor today. As part of the planning process, he or she will coordinate with your other advisors as needed to help you achieve your financial goals and objectives. For more information, visit us at SMLNY.com/SMLPodcast. If you’ve enjoyed this podcast, tell your friends about it. And be sure to give us a five-star review. And check us out on LinkedIn, YouTube and Twitter. Thanks for listening, and we’ll talk to you next time. Tax laws are complex and subject to change. The information presented is based on current interpretation of the laws. Neither Security Mutual nor its agents are permitted to provide tax or legal advice. The applicability of any strategy discussed is dependent upon the particular facts and circumstances. Results may vary, and products and services discussed may not be appropriate for all situations. Each person’s needs, objectives and financial circumstances are different, and must be reviewed and analyzed independently. We encourage individuals to seek personalized advice from a qualified Security Mutual life insurance advisor regarding their personal needs, objectives, and financial circumstances. Insurance products are issued by Security Mutual Life Insurance Company of New York, Binghamton, New York. Product availability and features may vary by state.​ SubscribeApple PodcastsSpotifyAndroidPandoraby EmailTuneInDeezerRSSMore Subscribe Options