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 70 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.