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.
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.
WHAT CAN POLICIES COVER?
Short-term care insurance policies can vary in terms of what they cover as well as coverage limits. But, in general, these policies will cover:
Home Health Care – YES
Assisted Living Facility Costs – YES
Skilled Nursing Home Stays – YES
Adult Day Care/Hospice Care – YES