2026 Predictions: LTC will be King Again

In Jan 2026, the first Baby Boomers turned 80— and millions of families are about to learn that Medicare does not cover long-term care.

Hindsight is easy. Foresight is what’s required.

How will Americans react to the Great Wealth Transfer?  Are insurers adequately armed with the right products? Can legislators be counted on to rescue families—or even partner meaningfully with our industry? And perhaps most importantly: are insurance professionals ready?

As the daily avalanche of long-term care insurance (LTCi) claims continue to grow, consumers are being motivated to plan—often for the first time. We are stepping into the greatest wealth transfer in U.S. history. While no one can predict precisely how it will unfold, one reality is already clear: long-term care will be King again.

A major shift in focus is underway. Long-term care insurance is poised to reclaim its place as a cornerstone planning solution—right alongside Annuities and Life insurance. This isn’t speculation; it’s inevitability.

While I’m less optimistic that politicians will make meaningful LTC progress in 2026, I am confident insurers have read the tea leaves. They’ve rightly elevated long-term care planning as a priority and are entering this next phase equipped with stronger, more flexible products—along with new solutions designed to meet evolving consumer needs.

Consumers will be ready. Insurers are ready. Financial planners will increasingly refer clients to insurance professionals for LTCi guidance.

So, the real question becomes: are you ready? Are you—and your staff—prepared to consult, educate, and deliver long-term care solutions with confidence and expertise? Because as we move into 2026 and beyond, the question won’t be whether your clients
purchase long-term care insurance. It will be whether they purchase it from you.

2026 Predictions

METRIC: CONSUMER

• In January 2026, the first of the 65 million surviving Baby Boomers officially turned 80 years old. As more Boomers go on claim, families will personally make the devastating discovery that Medicare does not cover LTC expenses.
• Families will learn the hard way the consequences of failing to have a LTC plan. This will be reinforced by media outlets and documentaries reporting on the crisis—as the cost of care rises and the number of available professional caregivers decline.
• These consumers will become eager, future LTCi buyers. They are already asking questions about what they can do to avoid the same fate for their spouse and children.
• As more employers offer LTCi as an employee benefit, employees will jump at the chance to purchase affordable LTCi at group rates, which are sometimes guaranteed issue.
• Insurance products are already available today, even for unhealthy Boomers, with options such as Short-Term Care insurance and/or Hybrid-LTC Annuities, which require far less underwriting or offer guaranteed approval.
• Producers will help more families plan now—rather than during the chaos of an LTC event—when they are scrambling to figure out which assets to liquidate.
• RIAs and financial planners will set up agreements with LTC Specialists and insurance agents to meet the growing demand. More producers will obtain their respective state licenses to sell long-term care insurance, rather than farming it out or relegating LTC to a junior staff member.
• As the demand for long-term care expertise grows, more producers will embrace LTC and become credentialed with the CLTC designation.

METRIC: PRODUCERS

• Get ready, existing clients and prospective clients will ask you about extended care planning…
• Insurance professionals will come to appreciate that LTCi planning can be done in stages. For example, while a $3,000 monthly LTCi benefit may not meet the anticipated need, it will certainly help lessen the burden and financial strain. More than one solution can be sold over a period of years.

PREDICTION: More advisors will pursue LTCi licenses and credentials as demand for expertise accelerates.

METRIC: INSURERS/PRODUCTS

• Insurers will enter the market with their first:

» Hybrid Life

» Hybrid Annuity

» LTC Rider

» Worksite solutions (LTC rider or Traditional LTCi)

• Traditional LTCi carriers will simplify and digitize their new-business processes.
• Insurers will conduct market assessments on LTCi solutions and engage reinsurers and consulting firms to research, price, and help build existing extended care planning products we already know, and new innovative variations.
• Insurers will explore and expand relationships and build partnerships with Care Provider agencies in response to the caregiver shortage.
• It is hopeful that insurers will collaborate with industry trade organizations to sponsor ($) LTCi education campaigns, like we see with life insurance and annuities.

METRIC: LEGISLATION

At the State level:

• Unlike the federal government, states must balance their budgets… Every year. We can expect more states to propose Legislation or commission Studies and Task Forces to address their growing Medicaid expenditures.
• States recovering from hundreds of millions of dollars in losses from fires or hurricanes will be less likely to prioritize long-term care initiatives.
• Politicians may find it difficult to prioritize LTC, particularly because it requires an expense (tax) today to meet a need tomorrow— since it is occurring in the context of federal budget cuts to the states.

At the Federal level:

• There is hope for bipartisan bills, such as the WISH Act, demonstrating collaboration between policymakers and the insurance industry.
• It will likely take years for federal long-term care legislation to come to fruition.

 

Ramona Neal, CLU, ChFC, CLTC

Living Benefit Review Disclosure:  You are responsible for your own due diligence.  This information is not guaranteed for accuracy and is subject to change.  This content should not be construed as rendering specific tax, insurance, investment, or legal advice. You acknowledge that any reliance on this material or any opinion, statement or information shall be at your sole risk. If you take any action based on the information, you take full responsibility for the results of that action.  You should independently verify its content.