Published by Adam Bezman on October 20th, 2025



Around the 1990s, dozens of insurance carriers offered long-term care (LTC) insurance to help cover the rising costs of care. Fast forward to today, and that number has dwindled significantly—now, only about 12-15 companies are actively selling long-term care insurance. Even today, we continue to see carriers taking a step back from this market. 

So, what happened to the market? And how can you navigate it to deliver meaningful LTC solutions to your clients? 

The long-term care market exodus  

Long-term care insurance was initially built on assumptions that faltered over time. Early policies were reimbursement based, and medical expenses increased much more than insurers had expected. At the same time, they were also underpriced, with overly optimistic expectations about lapse rates, interest rates, and claim patterns. As people lived longer and held onto their policies, carriers found themselves paying out more in benefits than they anticipated—without the premium base to support it. 

These factors made long-term care policies unprofitable for companies, causing many to raise rates and limit new offerings or exit the market. Now, we’re left with far fewer options for long-term care. 

Is There Still a Need for Long-Term Care Coverage? 

Absolutely—perhaps more than ever. 

Americans are living longer, which means they are more likely to need care as they age. According to the U.S. Department of Health and Human Services, nearly 70% of people turning age 65 today will need some type of long-term care during their lives. With fewer caregiving options available, about 63 million adults (24% of Americans) are caregivers with 32% using paid help.1

Unfortunately, with fewer options for long-term care coverage and the rising costs of care services, finding meaningful coverage can be a challenge. That’s where hybrid long-term care solutions can come in to help solve for this need. 

Hybrid life and long-term care products - designed for stability 

Hybrid life and long-term care products are able to provide the stability policyholders need - especially if they account for three key factors: 

  1. Conservative Pricing – Products must be designed with more realistic assumptions around lapse rates, utilization, and investment returns.  

  1. Product Flexibility – Consumers are looking for a solution that adapts to their changing needs and preferences. For example, universal life can be structured with the flexibility to adjust payments or the death benefit.  

  1. Sustainability – A carrier’s financial strength and a long-term commitment to long-term care solutions are essential. Products should be designed to remain viable in fluctuating markets. For example, hybrid life and LTC products typically have capped benefits, creating more stability for both the carrier and consumer. 

When designed properly, hybrid solutions that combine long-term care benefits with life insurance are filling this market void and becoming the focus for many carriers.  

Another benefit of hybrid life and long-term care products is that they ensure the policy will provide value at some point – either through LTC benefits, a life insurance payout or both. Life insurance and long-term care complement each other as a 2-in-1 product because, ultimately, they have the same goal – to secure the financial future of individuals and their families. 

Fortunately, Trustmark has several hybrid life and long-term care solutions to help address this need in the market. By prioritizing stability and flexibility, clients can feel good about offering these products to their employees and employees can feel confident that they’re making a smart decision for their family’s financial future. As options for standalone care continue to shrink, the right policy can still help you create a long-term care legacy for your clients.

1AARP. Caregiving in the US. July 2025.