Please don’t take the “care” out of long-term care

Why is long-term care (LTC) so important? I’ll give you three simple reasons:

• At Trustmark, 60% of our LTC claims are for people under age 65¹
• 70% of people over age 65 will need LTC at some point²
• The average monthly cost of staying in an assisted living facility is $4,500 with even higher costs for nursing home care²

Bottomline, people of ALL ages need care and the costs are becoming exorbitant. So, why should employers be offering a long-term care benefit? And why should employees be buying it? 

Because, employees need support for care. 

But, today, is that why they’re buying? Is that why employers are offering these benefits?



Recently, Washington launched the WA Cares Fund – a state program to help make sure their constituents were prepared for the need for long-term care. This was accomplished either by a tax paid to the state or by employees purchasing qualifying coverage, such as Trustmark Universal Life, to opt out of the tax. 

As you can imagine, lots of people chose to purchase universal life with long-term care (or similar coverage from other carriers). And, with many other states now considering similar legislation, the spotlight is on long-term care. The potential for the sale of long-term care insurance or hybrid life and long-term care products is through the roof.

But, amidst all this opportunity and all this buzz about long-term care, I ask: please don’t take the “care” out of long-term care.

Many, understandably so, are purchasing this coverage as a tool to opt out of the tax. And, likewise, many employers are offering these benefits out of concern about the taxes on their employees. While, yes, this is an incentive to buy and to offer this coverage, it shouldn’t be the sole focus.

In Washington, many employers were unprepared for the tax. Given the influx of employers who added long-term care benefits, many employers couldn’t get a solution in place in time. So, for the many, many employers outside of Washington and the brokers that support them – please don’t wait until legislation forces your hand. Remember what long-term care insurance is really about. It’s not a tool to get employees a tax break. It’s a much-needed solution for a serious financial risk to employees. There’s a need to act, but not out of fear of a tax. 

Remember to keep the “care” part of long-term care front and center – it will help you make the right decision for employers and employees.

¹ Trustmark book of business. 2022.
² Genworth Cost of Care Survey. 2022.