Impact of Secure Act and Long-Term Care Insurance


Click to read more about the Secure Act & LTC Insurance

The SECURE Act 2.0 was signed into law on December 29, 2022. According to the American Association for Long-Term Care Insurance one provision contained within the new measure benefits those considering the purchase of LTC insurance.

“Any legislative action designed to make long-term care insurance more attractive to consumers is welcome news,” states Jesse Slome, AALTCI director. “However, the latest Act will likely result in nominal if any growth of policy sales.”

According to Slome, the SECURE 2.0 Act was signed into law by President Bidden on December 29. Provisions were included as part of the 4,100-page, $1.7 trillion spending bill that will fund the government through fiscal 2023.

“Section 334 of the Act permits retirement plans to distribute up to $2,500 per year for the payment of premiums for certain specified long term care insurance contracts,” Slome explains. “The law specifies that only a policy that provides for “high quality coverage” is eligible for early distribution and waiver of the 10% tax.”

The definition of high quality has not yet been specified Slome points out. “Perhaps more significant, the measure doesn’t become effective for another 3 years. A lot can happen in that time.”

“I hate to say it, but this is truly a rather insignificant and meaningless measure in terms of encouraging more Americans to plan for the real prospect of needing long-term care,” Slome speculates. “I do not believe that many people in their 40s and 50s who can both afford and health qualify for this protection will willingly tap their retirement plan savings simply to avoid the 10 percent penalty.”

The organization posted additional information on the Secure Act and Long-Term Care Insurance on the organization’s website. It can be read at

The American Association for Long-Term Care Insurance advocates for the importance of long-term care planning.  Slome is co-founder and has served as director since the organization’s inception. He is also director of the American Association for Medicare Supplement Insurance.

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