Over the next two decades, the United States will experience the largest transfer of wealth in history, with an estimated $124 trillion passing from baby boomers to Gen X and millennials.
But there's a major threat to this wealth transfer: long-term care costs.
Without proper planning, a single extended care event can erode assets, disrupt legacy intentions, and burden families.
For advisors, this is not just a health issue` it's a wealth preservation issue.
And in today's volatile LTC insurance landscape, proactive guidance has never been more important.
Why Long-Term Care Is a Wealth Transfer Risk
In 2024, long-term care costs rose across all categories, with the cost of homemaker and assisted living services up 10%, outpacing inflation.
At the same time, the average requested rate increase for LTC insurance has climbed to 56% in 2024, up from 47% in 2021.
Some legacy policy blocks have seen cumulative increases of over 400%.
The volatility and rising costs underscore the urgency for advisors to engage clients early and meaningfully.
Unfortunately, many clients avoid or delay conversations around LTC strategy planning, either because they believe they won't need care or because the planning process feels overwhelming.
Now is the time for advisors to lead with education, empathy, and actionable strategies.
Here are five ways to frame the conversation:
1. Start with the big picture.
Help clients consider the real-world impact of needing care without a plan.
What would daily home care, assisted living, or skilled nursing cost?
Who would coordinate it, and at what emotional and financial cost to loved ones?
Nearly 70% of people turning 65 today will require some form of long-term care.
This isn't just about insurance. It's about protecting families, preserving independence, and maintaining income streams.
2. Review what clients already own.
Many clients already own financial tools that can be optimized for LTC.
These include things such as cash value life insurance can be exchanged tax-free into hybrid LTC policies under IRS Section 1035.
Clients with annuities may include enhanced benefit riders triggered by care needs.
Those with safe harbor positions such as money markets, savings accounts, certificates of deposit, etc., can be reallocated into LTC-linked strategies that preserve principal.
By evaluating current holdings, advisors can unlock value and help clients reallocate resources, often without new out-of-pocket costs.
3. Leverage overlooked funding sources.
There are often untapped resources that can fund care more efficiently.
Business cash flow or retained earnings may be used to purchase LTC coverage, sometimes with tax advantages.
Required minimum distributions not needed for income can be redirected.
Health savings accounts can pay for qualified LTC premiums tax-free.
These strategies are especially effective for business owners, high earners, or retirees focused on tax-optimized wealth protection.
4. Lead with values, not products.
The best LTC plans are built around what matters most to the client.
If staying at home is the priority, choose solutions with zero-day elimination for home care or cash indemnity models.
For those wary of traditional insurance, consider hybrid options with return-of-premium or death benefits.
If preserving legacy or maintaining predictability matters, consider policies with guaranteed benefits, fixed premiums, or inflation protection to support long-term goals.
By aligning solutions with personal values (legacy, flexibility, or predictability), advisors create plans that feel strategic, not transactional.
5. Offer flexible funding approaches.
Not every client can fund a policy with a large lump sum.
Many products now offer monthly or annual payment plans, options to use bonuses or savings reallocations, and structures that align with peak earning years.
This flexibility makes LTC coverage more accessible, especially for younger clients and the mass affluent, who are most at risk of wealth erosion from care costs.
Why This Matters Now
Rising care costs, longer life expectancies, and the largest wealth transfer in history have made long-term care planning a strategic imperative.
Add in today's higher interest rate environment and increased carrier participation, and the market is offering some of the most competitive LTC product pricing in recent years.
Advisors have a powerful opportunity to protect wealth, preserve independence, and support generational legacies.
Guiding clients through these conversations today builds trust, differentiates your practice, and secures the financial futures of families for decades to come.
Chad Druvenga is the founder and CEO of CBS Brokerage, the president of Kestra Insurance Planning and
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