Business Transformation | 04.09.25
Long-Term Care and the Silver Tsunami: Takeaways From the 2025 BISA Annual Conference
by: Steve Sugumele
FOR FINANCIAL PROFESSIONAL USE ONLY
I recently attended the 2025 BISA Annual Conference and came away with many great ideas. One of my favorite presentations was “How To Use Asset-Based Long-Term Care To Help Your Clients Avoid the Financial Impact of the Silver Tsunami.” This session was presented by Don Quante (partner, Simplicity ABLTC, Simplicity Group), Jeffrey Sobota (vice president of business development, Nationwide Financial), Jeremy Veryser (regional account director, care solutions, OneAmerica) and Pete McDonnell (director of insurance, M&T Financial Services).
Here is a summary of what I learned:
The Coming Wave of Need
On January 1, 2026, the first baby boomer turns 80. This will mark the beginning of an unprecedented demographic shift in the United States (U.S.). By 2050, 86 million Americans will be over the age of 65 — an all-time high. That is a 46% increase from 2022. With this aging population comes an inevitable rise in the need for long-term care (LTC). The biggest driver? Cognitive decline. Every 66 seconds, someone in the U.S. is diagnosed with Alzheimer’s, just one of many forms of dementia. The demand for care will only intensify, yet few Americans are prepared for the financial burden it brings.
The Harsh Reality of Paying for Care
Despite the growing need, only 7 million long-term care insurance (LTCI) policies are in force in the U.S. — a strikingly small number considering the demand. Many people mistakenly believe Medicare will cover their LTC needs. In reality, Medicare only pays for up to 100 days of skilled nursing care, and Medicaid provides limited, government-controlled options for those who qualify financially. The question isn’t if people will need care, but how they will pay for it. Without a plan, the default is often spending down assets, relying on family or becoming dependent on Medicaid.
The Market Opportunity
There are 267 million life insurance policies in force in the U.S., with $4.7 trillion in cash value. Baby Boomers alone control $17 trillion in qualified retirement accounts. The financial tools exist to fund long-term care, but most people don’t realize they can reposition assets instead of paying out of pocket. This is where financial advisors play a critical role. The Pension Protection Act was a clear acknowledgment from Congress that America has a looming long-term care crisis. Advisors must help clients understand their options, protect their assets and ensure they receive care on their own terms.
“Where Do You Want Your Care?”
Most people would prefer to receive care at home rather than in a nursing facility. However, home care can be expensive, and few have a plan to cover the costs or a plan for the logistics of care. When asked, “how would you like to pay for care?” most retirees default to their IRA or other savings. Without planning, they risk draining their retirement funds or burdening their families financially and physically.
Why Buy a Long-Term Care Policy?
Not everyone needs an insurance policy, but everyone needs a plan. Just developing a plan of care and letting your loved ones know your wishes is a great start. For many, an insurance policy may be a good solution. A well-structured LTC policy offers key advantages:
- Leverage: Turn pennies into dollars by using insurance to cover large potential expenses.
- Asset Protection: Preserve savings, investments and inheritances.
- Control: Decide where and how you receive care instead of being at the mercy of Medicaid.
- Care Concierge Services: Many policies offer care coordination, reducing the burden on families and giving them resources that they can rely on for assistance.
Beyond traditional policies, cash indemnity benefits provide flexibility for informal care. Unlike reimbursement policies, which require proof of expenses, cash indemnity LTCI pays benefits directly, allowing families to use funds as needed — including paying loved ones for care.
The Role of Advisors: Simplify the Solution
One of the biggest barriers to LTC planning is complexity. A confused client won’t make a decision, so advisors must break it down simply. Clients need to understand that they can reposition existing assets, such as old life insurance policies with cash value or CDs, without taking on new out-of-pocket expenses to pay for these policies. Advisors also have some great tools like MoneyGuidePro’s “what if” scenarios, that can illustrate how LTC planning integrates with income planning.
Plan Now or Be Forced to Later
The choice is simple: plan ahead if you value flexibility and control. The earlier someone plans, the more options they have. Advisors must help clients understand the importance of addressing LTC costs, family wishes and funding strategies within their overall retirement plan. Long-term care isn’t just a financial issue — it’s a family issue. The right plan ensures dignity, independence and peace of mind for both clients and their loved ones. The time to act is now.
Additional sources to support this session were provided at the 2025 BISA Annual Conference.
Steven Sugumele manages the distribution of life and long-term care solutions for Citi Personal Wealth Management in the United States. His teams provide estate and insurance planning solutions, including business succession funding, wealth conservation and transfer strategies for high-net-worth individuals, business owners and professionals. Sugumele has over 25 years of experience managing teams and working with advisors and their clients in the institutional and retail spaces. Over the course of his career, he has built and led insurance distribution teams at several global wealth management firms, including HSBC Bank and MetLife.
Sugumele and his team spend a great amount of their time on the design and implementation of large life insurance portfolios for successful and affluent clients. He especially enjoys taking complicated strategies and creating simple, easy to understand plans. He has found that clients appreciate their holistic approach and take comfort in the confirmation that their risk and protection plans will be there for their families in times of need.