Short Term Care
What Is Short-Term Care Insurance
Short-Term Care insurance is a policy that will help pay for your care when you need help with your activities of daily living. (Bathing, Dressing, Eating, toileting, Transferring, continence and Memory Care and Stimulation (Alzheimer’s and Dementia.
Medicare or your Medical plan does not pay for Short Term Care, Long Term Care or Extended Care.
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 have ONLY 2 “YES” “NO” QUESTIONS and can be ideal for people with existing health problems.
Who Should Consider A Short-Term Care Policy?
- 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 and has a net worth of less than $500,000.
A Few Short-Term Care Facts?
- Minimum Applicant Age: 40 or 50.
- Maximum Applicant Age 85 – 89.
- Typical Benefit Amount $100, $150 or $200 per-day.
- Can a policy pay for Home Care? YES! .
- Can a policy pay for Assisted Living? YES! .
- Can a policy pay for Nursing Home Care? YES! .