New long-term care rider from Aflac offers flexibility and added security

(Neutral)

Rhea-AI Summary

Aflac (NYSE:AFL) on March 23, 2026 introduced a new long-term care (LTC) rider for its Group Life Term to 120 product, combining term life and LTC protection for workplace benefits. The rider offers inflation protection, portability, flexible payment options, and eligibility across care settings and caregivers.

The benefit includes an optional LTC period extension, restoration of full face amount after LTC use, an annually accruing fund to offset cost increases, and choice of lump-sum or periodic payments; availability varies by state.

News Market Reaction – AFL

+0.40%

+0.40% Session close to close

In the Mar 23 session, AFL gained 0.40%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement introduces a long-term care rider to Aflac’s Group Life Term to 120 product, targe...

Analysis

This announcement introduces a long-term care rider to Aflac’s Group Life Term to 120 product, targeting an aging U.S. population where 1 in 6 people are expected to be over 60 by 2030. It emphasizes flexibility in care settings, optional inflation protection, and portability. In context of recent earnings strength and benefits partnerships, this adds another workplace-focused solution investors can monitor for adoption and strategic fit.

Key Figures

Aging population: 1 in 6 people

1 metrics

Aging population 1 in 6 people U.S. population projected to be over age 60 by 2030

Historical Context

5 past events · Latest: Mar 18 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Mar 18	Ethics recognition	Positive	-1.5%	Named a World's Most Ethical Company for the 20th consecutive year.
Feb 04	Earnings & dividend	Positive	+3.4%	Reported Q4 and full-year 2025 results, raised Q1 2026 dividend and highlighted buybacks.
Feb 03	Conference appearance	Neutral	+1.4%	Announced participation in a UBS Financial Services Conference fireside chat.
Jan 15	Benefits partnership	Positive	-0.5%	Joined Workday Wellness partner program to integrate supplemental products with AI-driven platform.
Jan 05	Earnings date notice	Neutral	-0.2%	Announced timing for Q4 2025 results release, CFO video update, and earnings webcast.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent positive brand/partnership news has sometimes seen muted or negative next-day moves, while earnings and capital return news drew a stronger positive reaction.

Recent Company History

Over the last few months, Aflac reported solid financial performance, including $1.4B in Q4 2025 net earnings and a $0.61 Q1 2026 dividend, alongside substantial buybacks. It highlighted ethics recognition and a Workday Wellness integration to enhance benefits delivery. Compared with those initiatives, this long-term care rider fits the broader strategy of expanding workplace-focused supplemental and life offerings while reinforcing financial protection themes for an aging population.

Key Terms

long-term care (ltc), rider, inflation protection

3 terms

long-term care (ltc) medical

"This hybrid term life with long-term care (LTC) product is the first of its kind"

Long-term care (LTC) means ongoing help with daily living—such as bathing, dressing, eating, medication reminders, or supervision—for people who can’t fully care for themselves over months or years. It matters to investors because demand, costs, insurance payouts, and the buildings and services that provide this care behave like a durable market driven by aging populations and chronic conditions, affecting health insurers, care operators, real estate, and government programs.

rider financial

"With Aflac's new rider, the LTC benefit is built with unique flexibility"

A rider is an addition or amendment attached to a contract, insurance policy, regulatory filing, or corporate document that changes, limits, or expands the original terms. For investors, riders matter because they can alter rights, payouts, obligations or risk — like adding an aftermarket accessory to a car that changes how it performs or what it costs to maintain — and therefore can affect a company’s future cash flow, liabilities, or valuation.

inflation protection financial

"Aflac offers comprehensive long-term care solution for the workplace with inflation protection"

Inflation protection describes investments or strategies meant to keep your money’s buying power from shrinking when general prices rise, acting like a shield against the cost-of-living increase. It matters to investors because inflation reduces the real value of cash and returns, so holdings that rise with prices or can pass costs on to customers help preserve income and savings over time, much like a thermostat that adjusts to maintain a steady temperature.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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03/23/2026 - 10:17 AM

Aflac offers comprehensive long-term care solution for the workplace with inflation protection

COLUMBUS, Ga., March 23, 2026 /PRNewswire/ -- The cost of long-term care continues to rise, making caregiving challenging for many Americans. That is why Aflac Incorporated, the leading provider of supplemental health insurance in the U.S.,¹ has added a powerful new worksite benefit to its Group Life Term to 120 product. This hybrid term life with long-term care (LTC) product is the first of its kind to offer true protection against higher costs of caring for individuals as they age and will help protect the financial stability of American consumers.

"As a worksite benefits leader, we're excited to offer this much-needed benefit," said Bob Ruff, senior vice president, Aflac Group Benefits. "As Americans continue to live longer lives, our new product answers the great need for additional Life Insurance and Long-Term Care planning. It provides employees with a smarter, more flexible way to prepare for life's uncertainties as we age. It's about meeting people' needs and making responsible planning easier for everyone."

According to the World Health Organization, 1 in 6 people in the U.S. will be over the age of 60 by the year 2030.² A significant issue facing Americans and their loved ones is their ability to access the best possible long-term care that addresses their needs as they age. Additionally, our aging society — a phenomenon known as the Silver Tsunami,³ representing the shift of baby boomers reaching retirement age — will also need to cover rising costs associated with LTC.

With Aflac's new rider, the LTC benefit is built with unique flexibility, supporting a wide range of circumstances. Full LTC benefit eligibility is available regardless of the care setting or the caregiver, providing insureds with options. They have the freedom to choose either home-based care or facility-based care, as well as informal care from a family member or friend or a professional caregiver. This is valuable to many people who prefer to age in their own homes and receive care from someone they know personally. The customer can also take advantage of the benefits during his or her lifetime rather than being utilized following a death.

"At Aflac, we believe in giving people options when it matters most," said Tom Morey, senior vice president, Aflac Chief Actuary. "This rider combines life insurance and long-term care benefits into one solution, giving individuals the flexibility to adapt coverage to their needs while ensuring care where they feel most comfortable. It also helps employers respond to growing employee demand for benefits that deliver security and choice, strengthening their ability to attract and retain talent."

Customers can rest easy knowing the rider includes:

Optional extension of the LTC benefit period and restoration of the full-face amount of life insurance, even after it has been used to fund LTC
Optional inflation protection benefit
Annually accruing fund that grows the value of the LTC benefit over time and helps to offset LTC cost increases
Flexible benefits payment options, such as a one-time lump sum for catastrophic costs or periodic payments that better suit the needs of the customer
Portability, which means a customer can keep these benefits even after they leave employment

The Aflac Group Life Term to 120 with LTC helps insured individuals take advantage of a meaningful opportunity to feel secure in the years to come. This new long-term care rider can play an important role in offering meaningful financial protection and security at a time that can be difficult on many levels, from emotional to financial.

Products and benefits vary by state and are not currently available in all states.

Aflac Group products are underwritten by Continental American Insurance Company (CAIC), a proud member of the Aflac family of insurers. CAIC is not licensed to solicit business in New York, Guam or the Virgin Islands. For groups sitused in California, group coverage is underwritten by Continental American Life Insurance Company.

ABOUT AFLAC INCORPORATED
Aflac Incorporated (NYSE: AFL), a Fortune 500 company, has helped provide financial protection and peace of mind for nearly seven decades to millions of policyholders and customers through its subsidiaries in the U.S. and Japan. In the U.S., Aflac is the No. 1 provider of supplemental health insurance products.¹ In Japan, Aflac Life Insurance Japan is the leading provider of cancer and medical insurance in terms of policies in force. The company takes pride in being there for its policyholders when they need us most, as well as being included in the World's Most Ethical Companies by Ethisphere for 19 consecutive years (2025) and Fortune's World's Most Admired Companies for 24 years (2025). In addition, the company became a signatory of the Principles for Responsible Investment (PRI) in 2021 and has been included in the Dow Jones Sustainability North America Index (2024) for 11 years. To find out how to get help with expenses health insurance doesn't cover, get to know us at aflac.com or aflac.com/español. Investors may learn more about Aflac Incorporated and its commitment to corporate social responsibility and sustainability at investors.aflac.com under "Sustainability."

¹LIMRA 2024 U.S. Supplemental Health Insurance Total Market Report
²World Health Organization (Oct. 2025) "Ageing and Health" https://www.who.int/news-room/fact-sheets/detail/ageing-and-health
³Copeland, Rob. New York Times (Jan. 2025) "Boomers as Boogeymen: Should You Fear the Silver Tsunami?" https://www.nytimes.com/2025/01/31/business/silver-tsunami-meaning-boomers.html

Media contact: Jon Sullivan, 706-763-4813 or jsullivan@aflac.com
Analyst and investor contact: David A. Young, 706-596-3264, 800-235-2667 or dyoung@aflac.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/new-long-term-care-rider-from-aflac-offers-flexibility-and-added-security-302722141.html

SOURCE Aflac

FAQ

What is the Aflac (AFL) long-term care rider announced March 23, 2026?

It is a hybrid term life with LTC rider combining life insurance and long-term care benefits into one policy. According to the company, it adds inflation protection, portability, and flexible payments to Group Life Term to 120.

How does the Aflac (AFL) LTC rider handle inflation protection and cost increases?

The rider offers an optional inflation protection benefit and an annually accruing fund that grows the LTC value over time. According to the company, this is intended to help offset rising long-term care costs.

Can employees keep the Aflac (AFL) LTC rider if they leave their job?

Yes, the rider includes portability so customers can retain coverage after employment ends. According to the company, portability is a designed feature to help maintain protection during job changes.

What care settings and caregiver types are covered by Aflac's (AFL) new LTC rider?

Full LTC benefit eligibility is available regardless of care setting or caregiver, including home-based, facility-based, family or professional care. According to the company, this offers flexible choices for insureds preferring to age at home.

What payment options does the Aflac (AFL) LTC rider offer for beneficiaries?

The rider supports flexible payments, including a one-time lump sum for catastrophic costs or periodic payments to match needs. According to the company, this flexibility aims to tailor benefits to individual financial and care circumstances.