Short Term Care Insurance
A short term care insurance policy provides extended medical care coverage one year at a time. These shorter, less expensive policies are a great alternative to traditional long term care insurance.
The Growing Need For Extended Medical Care Coverage
Did you know that 70% of American’s over age 65 will require some form of long-term care before they die? It’s true. While not everyone will need admittance into a care facility or nursing home, you’ll likely need a specialized nurse or at-home caregiver at some time in your future.
Not being prepared for these likely expenses in your future can have significant consequences. Not only are medical bills, the leading cause of bankruptcy for senior individuals, but if you’re not able to get the care that you need, it can also lead to losing years of your life.
What Is Short Term Care Insurance?
Short term care insurance policies provide extended care medical coverage that goes above and beyond your health insurance and Medicare coverage. While traditional long term care policies provide coverage that lasts for multiple years, short term care insurance policies are for one year or less.
Short Term Care vs. Long Term Care Policies
As mentioned above, the primary difference between the two policies is the length of the policy contract. However, the contract’s length does drastically affect your policy’s cost and is the sole factor in determining which one option is appropriate for you.
Additionally, the majority of short term care policies have a 0-day elimination period. This means that your policy pays benefits the very day your claim is accepted. The vast majority of long term care insurance policies have enforced a 90-day elimination period before your policy begins the daily payout.
What Does Short Term Care Insurance Cover?
The benefits of your policy trigger if you become unable to perform two out of six daily living activities: bathing, dressing, eating, toileting, mobility, and continence. Once activated, the policy pays a daily dollar amount ranging between $100-300 per day, depending on your policy details. These funds protect you from paying out of pocket for medical services such as:
- Nursing home care
- Assisted living facilities
- Adult daycare services
- In-home care
- Home modification
- Care coordination
How Much Do Short Term Care Insurance Policies Cost?
As mentioned above, short term care policies are much more affordable than traditional long term care coverage. However, the cost does vary depending on your life circumstances such as health, age, gender, state of residence, and the size of police you are seeking.
According to the American Association for Long-Term Care Insurance, here are the average cost of short term care insurance policies.
- Average monthly premium at age 65 — $105
- Average monthly premium at age 70 — $141
As with all insurance products, the cost increases with you as you age. Therefore, if you’re shopping on a budget, act sooner rather than later.
Our team of independent agents is here to provide free quotes and illustrations from all the top-rated insurance providers across the country. We’ll help you find the lowest cost option and the best policy value. Did we mention that our services are free?
Can Individuals with Pre-existing Conditions Qualify?
Most short term care applications have required a simple health questionnaire of 10 questions or less. Individuals suffering from chronic pre-existing medical conditions will have a tougher time finding coverage with some carriers; however, specific insurance companies cater to those with existing health problems. We help you find the carrier who is most favorable to your health situation.
Does Medicare Provide Short Term Care Coverage?
Medicare Part A includes coverage up to 100 days of ongoing in-patient medical care within a hospital, care facility, or nursing home. Once the 100 days are used up you’ll be responsible for the full cost.
It’s important to understand that the most common type of long term medical care services do not require services within a care facility but rather at-home. Medicare does not provide benefits for at-home personal care.
Additionally, short-term care insurance policies pay in addition to your Medicare benefits. Therefore, the policy can be designed to maximize the benefits of Medicare and your short term care policy.
While it’s true that some long-term care claims last for many years, almost half (49%) of all long term care claims last one year or less.
It’s no secret that if you can afford traditional long term care coverage you should get it because it covers you throughout all outcomes. However, short term care insurance policies are much more affordable and protect you against the 49% likelihood that all you’ll need is less than one year’s worth of coverage.
How to Purchase Short Term Care Insurance
There are two routes in which you can go. You can shop on your own and go directly to each insurance company one at a time, or you can choose to work with an independent insurance agent who can do the shopping for you and help compare companies and policies to find your the best value and lowest cost.
Individuals who go about the shopping process almost always overpay for their coverage, which is why it’s essential to work with an independent agency such as ours.
Our team of experts is here to answer all you question and to provide free quotes and illustrations. We save you both time and money on your policy.
Our services are free. And there’s never any obligation when working with an agent. See why thousands of individuals have trusted us to help them protect their health and their savings. See what we can do for you. Fill out the form on your screen to get started.
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