1What Happened
A high-profile story published May 23, 2026 reports that long-term care insurance premiums have literally doubled for thousands of policyholders — and they have just 30 days to decide whether to pay the new rate, reduce their benefits, or cancel coverage entirely. The IRS also moved forward this month with implementing a new LTC tax incentive: eligible clients with 401(k) plans can now use up to $2,600 per year from their defined contribution retirement accounts to pay for LTCI premiums without an early withdrawal penalty.
2The Detroit Angle
Long-term care is one of the biggest financial risks for the 55–72 age group. A legacy LTC policy that suddenly doubles in premium is a crisis moment — clients have 30 days to make a high-stakes decision that could affect their retirement security for decades. On the positive side, the new IRS rule allowing 401(k) funds to cover LTCI premiums without penalty opens a meaningful new planning tool, especially for auto industry retirees with sizable 401(k) balances.
3Janine's Take
Thousands of people with legacy long-term care insurance policies are receiving notices that their premiums have doubled — sometimes overnight — and they have just 30 days to respond. Each option has long-term consequences, and the wrong choice could leave you exposed at exactly the wrong moment. If you or someone you love received one of these notices, please reach out before you make a decision.
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