The Financial Flash
Why Annuity/LTC Products Deserve More Attention
There's a great need for long-term care, yet only a small proportion of Americans have coverage.
70% of Americans over 65 will need some form of long-term care.
Yet only 3% of Americans over 50 have any LTC insurance — leaving most exposed to costs averaging $5,000+ per month.
Rising consumer anxiety:
A recent study by the Alliance for Lifetime Income by LIMRA shows two thirds of consumers* say they are worried about becoming physically dependent on others and more than half worry about experiencing cognitive decline in retirement.
Why annuity/LTC combination products could work:
Annuity/LTC combination products allow tax-free withdrawals for qualified LTC expenses under the Pension Protection Act.
Some products even multiply contract value for care needs, offering far more leverage than basic income boosts.
Market snapshot:
Sales of annuity/LTC products hit a record in 2024, up 50% year-over-year, according to LIMRA data.
This represents just 0.2% of total annuity sales and 14% of LTCI sales — a tiny fraction of the market.
Why is there little adoption?
Complexity and lack of awareness among consumers and advisors.
Limited carrier participation due to specialized expertise and regulatory hurdles.
The opportunity:
$754 billion sits in fixed-rate deferred annuities; more than half is non-qualified.
Redirecting just 20% of the $30 billion in annual surrenders could mean $6 billion in sales — compared to the $449 million annual average over the past decade.
The SEC has announced temporary exemptive relief from several upcoming compliance dates under Regulation NMS related to minimum pricing increments, access fees, and order transparency. Specifically, the implementation of amended pricing increments (Rules 600(b)(89)(i)(F) and 612) and access fee caps (Rule 610(c)) has been extended until November 2026, while the requirement that exchange fees be determinable at execution (Rule 610(d)) is extended until February 2026. Additionally, exchanges have temporary relief from updating their rules to reflect the round lot definition until 30 days after any lapse in appropriations ends. What does this mean? It means that market participants gain additional time to prepare for the operational and technological updates these rule changes require. If you wish to find out more about these changes, read the full release HERE.
As Black Friday approaches, retail companies should be especially wary of potential ransomware attacks. According to Cybernews’ Ransomlooker – a tool that tracks ransomware attacks globally – attacks on retail companies have been growing steeply since 2022.
Key findings:
Ransomlooker data shows that ransomware attacks have increased more than 230% since 2022. Attacks nearly doubled from 2022 to 2023, grew by another 48% in 2024, and have already risen by over 16% in 2025 — and the year isn’t even over yet.
In 2025, retail is the third most targeted industry, behind technology in second place and manufacturing in first. Previous years showed similar trends, with retail the fourth most targeted industry in 2024, 2023, and 2022.