Short-Term Care Insurance
An Effective Alternative to LTCI
Short-term care insurance (STC) is an insurance product designed to cover the cost of care for a limited period of time—typically ranging from 90 days to 12 months, and in some cases up to 24 months. Depending on the policy, STC can pay benefits for care provided in assisted living facilities, nursing homes, or at home. STC policies are generally less expensive, easier to qualify for, and quicker to put in force than LTCI, making them accessible to a broader range of clients, including those who are older or managing health conditions that would make LTCI unobtainable. STC is available in most states—contact us for more information on state availability.
Benefits of Short-Term Care Insurance
For attorneys focused on practical planning outcomes, STC offers several distinct advantages. First off, short-term care insurance policies typically involve simplified underwriting, often without medical exams. Due to the shorter benefit period, premiums tend to be significantly lower than LTCI premiums, making STC attractive to clients who don’t want to commit to the cost of traditional coverage. Many STC policies have minimal waiting periods and fast policy issuance, and STC can be used in conjunction with other planning techniques, including trusts and Medicaid planning.
When Short-Term Care Insurance is Appropriate
STC is particularly well-suited for clients who:
- No longer qualify for LTCI due to age or medical condition
- Do not want to pay LTCI premiums
- Want coverage during their LTCI elimination period
- Are looking to bridge the gap between funding an irrevocable trust and qualifying for Medicaid benefits
A Supplemental Solution
The most critical element of short-term care insurance is how it aligns with the client’s specific care timeline and planning strategy. Because STC provides coverage for a defined and limited duration, it must be carefully coordinated with the individual’s anticipated care needs, LTCI elimination periods (if applicable), Medicaid look-back rules and eligibility timelines, and trust funding and asset protection strategies. In short, short-term care insurance is a powerful complement to a comprehensive long-term care plan.
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Traditional LTCI
Traditional LTCI is a tried and true product to help your clients protect against a long-term care event.
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Asset-Based LTCI
Asset-based, or hybrid, LTCI offers your client additional flexibility and opportunity for growth.
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LTCI FAQs
Get answers to commonly asked questions regarding long-term care insurance and our process.
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