Millions of Americans reach their 70s and still have no plan in place for the future risk of needing costly long term care services. Short-term care insurance policies have existed for years but are gaining renewed attention.
“There is an alternative long-term care planning option when cost, age or health is an issue and it’s called short-term care insurance,” declares Jesse Slome, director of the National Advisory Center for Short-Term Care Information. (NAC-STCI).
Long-term vs. short-term care insurance
“Our phones ring daily with people in their 70s who want long-term care insurance protection and we have to tell them some hard facts,” Slome shares. “After age 70, almost half of those who apply for traditional long-term care insurance are declined for coverage and if you can health-qualify, the cost of coverage will be expensive.”
When is it too late?
Slome cited the American Association for Long-Term Care Insurance’s most recent industry research that reported 44 percent of applicants between ages 70 and 79 who apply for long-term care insurance are declined for health reasons. “Short-term care insurance can be a good alternative to look into because these policies can be easier to qualify for,” Slome explains.
The Advisory Center director noted findings from their most recent analysis. “A 79-year old female applying for $54,000 of long-term care insurance coverage to pay for future care in her own home would pay $9,500 a year,” Slome notes. “The equivalent short-term care insurance policy would cost $3,800 a year.”
Short-term care insurance consideration
“Long-term care insurance agents are starting to add short-term care insurance policies to their portfolio of protection products,” Slome reports. “Leading insurers are offering these products and we predict growth of the category over the next few years.”
“Short term care insurance policies are less expensive and may provide all the care an individual will ever need,” Slome concludes. “Nearly half (41%) of all long-term care insurance claims last only one year or less.”
