ARE SHORT TERM CARE POLICIES A VIABLE OPTION?

1/2/2018

As a long-term care planning specialist for 16 years, myself, like most of us have been challenged with getting everyone that we work with some sort of coverage. We just want to help everyone, but unfortunately we cannot. The three main factors are health, age and affordability. Long-term care insurance requires that you be in “decent” health and insurance companies are not getting easier on underwriting. LTCi stops taking applicants around age 75. And then of course if you have waited to address planning, the premiums have become unaffordable for many.

Short-term care plans provide care for usually less than one year, hence the name. According to most insurance carriers, the majority of claims are under a year, but still many may last for years. Most of these plans are designed to provide care after a hospital stay and assist with recovering either at home or in a facility. Many are for chronic care only with some strict limitations. Some work just like LTCi in qualifying for care, but not the typical 90-day wait period or expectation of care needed longer than 90 days. Some only cover chronic care, some cover all types.

Short Term Care Pros:

Lower cost generally
Underwriting up to age 89
Much more liberal underwriting, in some cases even early Alzheimer’s and Parkinson’s can get some coverage.
Most pay from day 1 versus 90 days
Pays cash instead of reimbursement for expenses incurred.
Covers short term care (under 90 days). Great for hospital recovery when only weeks of assistance are needed.
STC covers a high percentage of claims.
In some cases care could last for up to 2 years

Short Term Care Cons:

Care is generally less than one year, some less than 6 month
Not all plans are comprehensive and don’t cover all types of facilities.
Some only cover home care
Does not cover the lengthy Alzheimer’s / Dementia potential clams well.
Most lack inflation options that help for younger applicants.

In summary, short-term plans are great for many, especially those with many health issues or older ages that prevent them from qualifying for long term care insurance. However, if you are younger and in better health, traditional long term care insurance will do much better for most.

Find out what it will cost you today with one of our free quotes.

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ARE SHORT TERM CARE POLICIES A VIABLE OPTION?

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