Long-Term Care (LTC) Planning is often treated as a late-life issue — something to address alongside Medicare decisions, retirement healthcare, nursing home costs, or concerns about aging parents.

The data tells a different story.  According to AARP and related 2024 analyses, roughly half of the estimated 8 million Americans with current long-term services and supports (LTSS) needs in 2022 were under age 65. Lost independence is not exclusively a retirement event — it is a lifetime planning variable.  That reality alone fundamentally changes how advisors should frame and integrate LTC risk into comprehensive financial planning.

It may be dated, but an article in ThinkAdvisor discussed how The American Association for Long-Term Care Insurance (AALTCI) found that among the four LTC plan providers surveyed, "young female claimants ranged in age from 28 to 42 when they implemented their plans, and from 28 to 46 when they filed their claims. The benefits paid in connection with these claims ranged from $107,500 to $730,200. Young male claimants ranged in age from 21 to 38 when they implemented their plans, and from 24 to 38 when they filed their claims. The amounts paid in connection with these claims ranged from $92,500 to $703,000."

Not surprisingly, the advisory community is witnessing a growing number of younger individuals purchasing LTC insurance, both individually and through their employers.  Contrary to the belief that younger consumers are not keen on implementing LTC plans, evidence suggests otherwise.  The 2024 Milliman Long-Term Care Survey indicated that the average issue age for new stand-alone LTCI policies remains approximately 57. This indicates that most purchasers are still in their late 50s — well before traditional retirement age. While a meaningful portion of buyers are in their 60s, underwriting outcomes and placement rates decline as age increases, reinforcing the structural advantage of addressing LTC planning earlier rather than later.

Although LTC is commonly associated with nursing homes and advanced age, the most recent industry data shows a broader reality. Traditional LTC policies paid about $14 billion in claims in 2023, and there are far more people receiving care in their own homes than in nursing facilities — a clear indication that care need is not limited to institutional settings. AALTCI data reports that the majority of new individual LTC insurance buyers are between ages 50 and 69, a range that precedes typical retirement age and reflects a planning window where health qualification and pricing are more favorable.

This suggests that long-term care risk is not exclusively a late-life issue. Individuals may require extended care due to illness, injury, or functional decline long before traditional retirement milestones, and many of the resulting claims involve home or community-based care rather than nursing home stays. Early planning and coverage consideration can therefore preserve eligibility, reduce cost, and better align protection with actual care needs — not just the stereotypical nursing home scenario

As financial planning evolves, consumers should address the risk of lost independence earlier in the planning process while they're healthy to maintain strategic flexibility and optionality.  With industry placement rates hovering below 60 percent, procrastination has negative attributes because it narrows options and increases structural uncertainty inside the retirement plan.  

At the same time, market data reflects a continued shift toward "hybrid" and combo solutions, as life insurance policies with chronic illness or LTC acceleration features now account for the majority of policies providing LTC-related benefits. Furthermore, these hybrid structures allow consumers to integrate care risk within broader planning objectives — aligning asset allocation, longevity, liquidity, and legacy considerations in a coordinated way rather than isolating them.  Addressing autonomy risk early does not simply reduce cost; it strengthens the integrity of the overall financial plan.  Unfortunately, the trend continues that the stand-alone market remains smaller and highly concentrated among a few carriers.  

The advisory community must encourage its younger clients to start the LTC Planning process early.  Discussing parental concerns and quantifying future LTC needs using a HALO Assessment would be an excellent practice. By making this necessary transition in their practice, advisors can help clients prepare for the future and ensure they have the care they need, no matter what life brings.

Maximize your clients' options and discuss Long-Term Care Planning as early as possible.....

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