Short Term Care
Short-term care insurance offers affordable, immediate benefits for those who need temporary long-term care coverage, often paying from day one and alongside Medicare. With simpler underwriting and lower costs than traditional long-term care insurance, it’s a practical option for older adults or those who may not qualify for full LTC coverage.
Short Term Care Policies
The typical Short-Term Care insurance (STCi) policy provides coverage for 1 year or less. For many people, this is a very appropriate and affordable amount of coverage. It is true that some long-term care claims last for many years,however, almost half (49%) of long-term care insurance claims LAST ONE YEAR OR LESS.
The majority of policies have a 0-day deductible (Elimination Period) and a full year of benefits. Simply, that means the policy pays on the very first day one qualifies for benefits. Most traditional long-term care insurance policies (about 94%) are sold with a 90-Day Deductible that must be met before benefits are paid.
It is important to know that these policies can pay in addition to Medicare — something a traditional Long-Term Care Insurance policy is prohibited from doing.
Most Short-Term Care applications have 7-to-10 health questions. If you can answer “NO” to all the questions, you are 95% through the health underwriting process. However, there are policies that haveONLY 2 “YES” “NO” QUESTIONS and can be ideal for people with existing health problems.
You (or a spouse) were DECLINED for traditional LTC Insurance.
You want a LESS EXPENSIVE option (than traditional long-term care insurance).
You WAITED TOO LONG to buy long-term care insurance (cost is now too high!).
You are AGE 80 OR OLDER.
You are a SINGLE WOMAN (rates for Short-Term Care policies are NOT GENDER-BASED as they are with traditional long-term care insurance).
You have a long term care insurance policy and you want to cover the Elimination Period.
The typical person buying short-term care insurance is between the ages of 65 and 74.