Americans are more fearful that they’ll be devastated by long-term care expenses than by outliving their money.

A recent survey of investors with at least $250,000 in investable assets found that 57% listed future health/long-term care (LTC) expenses as their greatest retirement concern, according to the Lincoln Financial Group. That outdistanced the 37% of investors who listed "outliving their savings" as their greatest concern.

Getting affordable, useful LTC policies into more Americans’ financial plans is the driving force behind a Treasury Department inter-agency task force on LTC insurance reforms.

The rapid aging of America is fueling policy and funding concerns. The number of Americans age 65 and older will nearly double from 52 million in 2018 to 95 million by 2060, and the 65-and-older age group’s share of the total population will rise from 16 percent to 23 percent.

To make long-term insurance more affordable for more people, the American Council of Life Insurance told Assistant Secretary of Economic Policy and Chairman of the Task Force Michael Faulkender in a new letter that tax and policy reforms can accelerate LTCI purchases.

“Millions of Americans’ financial and retirement security are at risk from exposure to unfunded LTC events. Access to additional options to meet and finance the need for long-term services and supports will enable consumers to address those needs without eroding other assets or imposing on family and friends,” said Charles Piacentini, vice president, Insurance Regulation & Associate General Counsel, at the American Council of Life Insurers (ACLI), which advocates for 280 insurance companies nationwide.

The ACLI’s recommendations for expanding consumer access to LTCI coverage include:

 • Providing tax incentives to expand consumer access to LTC coverage through workplace and retirement plan options: 

• Making LTC coverage available through Internal Revenue Code (IRC) Section 125 cafeteria plans and Flexible Spending Arrangements (FSA);

• Allow tax-free premium payments for LTCI policies from or within their 401(k)s, 403(b)s, IRAs, and other retirement plans;

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