Long-term care planning should always be a major focus for any individual examining his or her financial goals. But now that we know more about long-term care, people are starting to think short-term. If you understand the need for long term care insurance but have been hesitant to move ahead, you may want to explore short-term care insurance as a viable option. While each person’s needs are unique, many long-term care situations are resolved in less than a year. The American Association of Long-Term Care Insurance has reported that almost half (41%) of long-term care insurance claims last less than one year. This has led many of our clients to rethink their care planning strategies.

Short-Term Care insurance covers care received in the home, adult day care, hospice care, and even assisted living and nursing home facilities. Benefit periods with this type of insurance are generally one year or less and offer first day coverage. Like long term care insurance, it does not require a prior hospital confinement. This type of insurance product can be a great alternative for covering care expenses.  It can also fill some of the gaps left by Medicare and Medicare Supplement Insurance.

Qualifying for benefits is the same as traditional long-term care insurance. You must be unable to perform at least 2 of 6 activities of daily living or have a cognitive impairment. The application process is less complicated than applying for long-term care insurance and simplified underwriting makes it easier to qualify for coverage. Usually no medical records are needed from your doctor.

Reasons you might want to consider short-term care insurance as a planning option.

1. You cannot qualify for long-term care insurance because of health issues.
2. You have been declined for traditional long-term care insurance.
3. You are a single female (premiums are unisex- unlike LTCi which uses gender based pricing- making female rates much higher).
4. Premiums will be substantially less than long-term care insurance.
5. You would like to have coverage for long-term care care services, but don’t want to pay the high premium for long-term care insurance.
6. You are worried that Medicare and your Medicare Supplement might not meet your care needs.
7. You are concerned that your group health coverage may leave some gaps. Nearly 50% of those receiving long-term care services are under age 65. Source: Kaiser Commission on Medicaid Facts - Medicaid and Long-Term Care Services and Supports, June 2012