Two Long-Term Care Plans. Every Employee Already Has One.

Most people have a long-term care plan by default. It’s called spending everything they own.

If you ask the majority of your clients whether their employees have a long-term care plan, most of them will say no. But that’s not entirely accurate. Every employee has what I’d call a “Default Plan” — when care is needed, they either pay for it themselves, out of their savings, or use family funds to get through.

For most American workers, that plan will be catastrophic. And most of them have no idea that it’s already in motion.

The reality that is not discussed enough is that long-term care expenses pose a significant financial risk to American families. In fact, 70% of people over 65 will need some form of long-term care in their lifetime.¹ Despite this, LTC benefits seem to be the least discussed in the workplace benefits conversation. So, why is that?

They are often skipped for three main reasons. 

1) It’s uncomfortable. 
2) It can be a complex benefit.  
3) Traditional long-term care policies rarely exist in the market today. 

But hybrid life insurance with long-term care riders has changed the equation. They are transforming the way LTC benefits are viewed by clients and their employees – they are, simply put, a better solution. 

The Default Plan Vs. The Better Plan

	The Default Plan	The Better One
Financial Exposure	Self-fund $300K–$500K+ from retirement savings or home equity — with no ceiling on costs	A guaranteed benefit pool is available immediately; retirement assets remain protected and untouched
The Medicaid Trap	Must spend down nearly all joint assets before Medicaid eligibility — leaving the healthy spouse with almost nothing	Benefits fund care privately; the family retains assets, income, and financial independence
Family Impact	Spouse or adult children become default caregivers, often leaving the workforce entirely	Professional care is funded; family stays in their careers and relationships without being forced into caregiver roles
Retirement Security	One LTC event can wipe out 10–15 years of savings in just 2–3 years of care costs	Care costs are ring-fenced; savings, investments, and income streams remain on track
Legacy	Assets depleted by care; little or nothing left to pass to children or a surviving spouse	If LTC benefits are never triggered, a death benefit is paid — the investment never simply disappears
Timing	Reactive — decisions made in a crisis, under duress, with no options and no leverage	Proactive — decided while healthy and insurable, at the lowest possible cost point
Costs Today	$0 today. $300K–$500K+ later — paid entirely from personal assets with no offset	A predictable monthly premium, often available via payroll deduction with group plan pricing

The Story That Makes It Real

As the saying goes, “data moves minds” - however, it’s really stories that move people. In the LTC conversation, there is no more powerful story than one that comes from someone who has lived through it. Let me share an example. 

Bob and Carol: The Medicaid Spend-Down

Bob and Carol spent over 35 years building a life together. But once Bob reached the age of 73, he began experiencing dementia symptoms, was ultimately diagnosed, and became in need of care. They had about $280,000 in savings and a paid-off home. They did everything right — but it still wasn’t enough.

Without long-term care coverage, they had to deplete nearly every joint asset before Medicaid would pay for Bob’s care — roughly $7,000 a month. By the time they qualified for Medicaid, Carol — who was still living at home and paying for utilities and groceries — had only $2,000 in liquid assets, plus a monthly allowance that didn’t cover her basic living expenses. The retirement they built together was gone. Their children inherited nothing. Carol spent her final years financially dependent on government assistance — something neither of them ever planned for.

Unfortunately, this is the default outcome for millions of American families.

This story often resonates because so many of us have seen it. For many of our parents, it's happening right now. When you frame LTC planning through the lens of what Medicaid actually requires — and what it can leave your parents or spouse with — the conversation changes. For your clients, it brings urgency to what was once an abstract thought.

The Numbers Behind the Risk

•    70% of people over 65 will need some form of long-term care¹
•    $108,405 is the median annual cost of a private nursing home room²
•    $0 is covered by standard health insurance for custodial LTC³
•    47% of Medicaid LTC recipients had middle-class assets before their care event⁴

That last number is worth sitting with. Nearly half of the people relying on Medicaid for LTC weren’t in a difficult financial situation before they faced the challenge of LTC. In fact, most of them started out exactly like your employees — like you — working, saving, building something. And a single unplanned care event depleted their resources.

What This Means for You and Your Clients

The hybrid life with LTC conversation is one of the highest-value, lowest-penetration opportunities in the group benefits space right now, yet most brokers haven’t added it to their voluntary stack. Most HR directors don’t know it exists in a group format, and most employees are unaware of the current care crisis.

That gap is an opportunity for you to lead with education rather than a product pitch. If you take the time to understand the Medicaid depletion story, the comparisons, and stories like Bob and Carol, your client won’t need to be sold — they’ll ask you how they can stay better informed. 

“The Default Plan costs nothing today — and everything later.
This plan costs something today — and protects everything later.”


¹Most aging Americans will need long-term care in their lifetime. Loved ones often take on the labor and costs. CBS News. 2025.
²Calculate the cost of long-term care near you. CareScout. 2026.
³Long-term care coverage in Medicare Advantage: Why it likely is not enough. Milliman. 2025.
⁴How Long-Term Care Costs Drain the Middle Class and Deepen Intergenerational Wealth Inequality. Roosevelt Institute. 2026.