Say your client wants long-term care insurance, but their application is declined due to their age or health or they simply can’t afford the premiums. Fear not – short-term care insurance is another solution!
If you sell long-term care insurance plans, you should offer short-term care insurance plans as well. These plans are flexible and can be an affordable safety net for those who need protection.
Not familiar with that form of coverage or when to recommend that a client go with STCi instead of LTCi? We’ll fill you in.
What Is Short-Term Care Insurance?
[Short-term care insurance (STCi), is one of the best long-term care insurance (LTCi) alternatives.
This type of insurance can feature:
- Coverage for nursing home stays, assisted living facilities, and home health care
- 0-day elimination period: beneficiaries receive benefits on the first day they qualify
- Coverage for one year of qualifying care or less
- More lenient underwriting
- Higher issue ages
- Lower monthly premiums
- Coverage for prescription drugs
Some carriers offer:
- $500 for home modifications such as ramps
- $150 for annual exams
- 20 visits to adult day care
- Various benefits for family and friend caregivers
Short-term care insurance can provide many advantages that long-term care doesn’t offer. However, note that LTCi plans can cover care for one year to an unlimited amount of time.
Who Are the Ideal Clients for STCi?
AARP reported that 56 percent of individuals turning 65 will need some form of LTC. However, did you know the American Association for Long-Term Care Insurance (AALTCI) found that approximately 49 percent of LTCi claims don’t last longer than one year?
Did you know many LTCi claims don’t last longer than one year?
We’ve already identified who makes an ideal LTCi client on the Ritter blog. Here are the characteristics of ideal STCi clients:
- Desires a cheaper alternative to LTCi
- Is too old to qualify for LTCi
- Has health issues
- Has been declined for LTCi
- Is a single woman (STCi rates are not gender-based like LTCi rates)
78 percent of STCi buyers are between ages 50 to 69. Keep that, in addition to the characteristics above, in mind as you’re determining if someone fits into the STCi client profile.
How to Decide If Your Client Should Buy LTCi or STCi
With all the LTCi and STCi products on the market today, you can now offer your clients multiple solutions to the ever-increasing cost of care for nursing home or home health care services. While a variety of options allows you to better accommodate the unique needs of clients, it can make it difficult to determine which product is the right fit for certain situations. If you’re stuck deciding between LTCi and STCi, always look at your client’s age, health, and budget to help you decide which is the best option.
Looking at your client’s age, health, and budget helps you determine if LTCi or STCi is the best option.
An STCi policy can provide clients who cannot qualify for or afford LTCi with at least some coverage. If your client can qualify for LTCi, whether or not they should buy it comes down to what types of benefits they want and how much they’d be willing to pay for them. And remember, if your client does purchase LTCi, they can also buy an STCi policy to cover its elimination period.
These types of plans can open doors for individuals who might have otherwise assumed they were closed. Add these options to your portfolio, and you’ll be the one with the sought-after key!
Register with Ritter to have access to competitive short-term care insurance policies and the support of our knowledgeable Sales team.
Not affiliated with or endorsed by Medicare or any government agency.
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