Similar to long-term care insurance, Short-Term Care (STC) covers home health care, assisted living, and nursing homes. It can be used to cover gaps in Medicare, or as an affordable alternative to Long-Tem care insurance. Short-term care insurance typically offers benefits for 12 months or less, however, most people on custodial care need the coverage for less than 12 months.
Why Consider Short-Term Care Insurance?
One of the leading selling points of short-term care insurance is its price. Here are the typical insurance premiums, according to the National Advisory Center for Short-term Care Information, a trade group:
Age 65 — $105 monthly
Age 70 — $141 monthly
STC insurance is issued on a “simplified” basis. The application is uncomplicated, there are no medical exams required, underwriting decisions come quickly, and policies are issued in a few days. Coverage is offered up to age 89. Many people who cannot qualify for Long-Term care, may qualify for Short-term care.
How Does Short-Term Care Insurance Work?
Choosing the amount of insurance is straightforward: you pick a daily benefit amount ($50 to $300 per day), and the number of days you want to provide coverage. Multiply the two together, and that gives you the total “pool of money” available to cover your care.
Most policies are issued immediately. The policy pays on the very first day you that qualify for coverage. The policy will pay for care when the policyholder can’t perform at least two of the six “activities of daily living”, eating, bathing, transferring in and out of a chair or bed, dressing, toileting, continence, or cognitive impairment such as dementia or Alzheimer’s.
Typical Short-Term Care Insurance Buyers
Short-term care insurance can be a good supplement to long-term care insurance because it provides coverage during the elimination period and complements Medicare. For individuals who are too old to purchase long-term care, who cannot afford LTC, or who may not medically qualify for insurance, short-term care insurance is a very affordable option.
Let our licensed insurance professionals explain your options, and provide you with a comprehensive proposal.