In the ever-evolving world of health and senior insurance, agents are always looking for products that provide real value to their clients and also add revenue to their business. We will go over some reasons selling short term care plans is a good way to helpclients and bring in revenue.
One of the most underutilized tools in your arsenal might just be Short-Term Care (STC) insurance. If you’re not already talking to your clients about STC, here’s why now is the time to start.
Short Term Care Insurance
Short-Term Care (or Recovery Care) insurance is designed to help cover care costs for a limited time, usually up to 12 months in settings like:
- Nursing homes
- Assisted living facilities
- Home health care
- Adult day care
It bridges the gap between Medicare (or traditional health insurance) and long-term care insurance, offering a more affordable and accessible solution.
Learn the key differences between long term and short term care insurance.
Why Agents Should Sell It
Fills a Coverage Gap
Medicare doesn’t cover long-term custodial care, and many clients either can’t afford or don’t qualify for traditional long-term care insurance.
STC provides a financial safety net during short-term recovery periods after surgery, illness, or injury without the high cost or strict underwriting of long-term care policies.
Easier to Qualify For
STC plans often have simplified underwriting, making them ideal for:
- Older clients (even up to age 89, depending on the carrier)
- Those with health conditions that disqualify them from LTC policies
- People who’ve waited “too long” to consider long-term planning
For clients that do not qualify for long-term care, STC might be their next best option.
Affordable for Clients
Many STC policies cost significantly less than traditional long-term care. That makes it easier for clients with various income levels to protect their retirement savings without breaking the bank.
Additionally; plans can be customized to fit a wide range of budgets.
Flexible Benefits
STC plans typically offer:
- Daily benefit amounts (e.g., $100–$300/day)
- Benefit periods (e.g., 90, 180, or 360 days)
- Optional riders like home health care or prescription coverage
This makes it easy to tailor a policy based on the client’s preferences and risk tolerance.
Cross-Selling Opportunity
Short-Term Care pairs well with:
- Medicare Supplement or Advantage plans
- Hospital indemnity insurance
- Final expense life insurance
It’s a natural upsell when you’re already having conversations around aging, recovery, or end-of-life planning. Many clients don’t even know this type of coverage exists until you bring it up.
Watch a quick YouTube video on why and how to sell ancillary with Medicare
Boost Your Business
Offering STC can:
- Differentiate you from other agents
- Add value to every client conversation
- Increase your commission opportunities with a product that’s often overlooked
It shows clients that you’re thinking beyond just the basics and that you truly care about protecting their finances.
Click here to get an idea of the different types of ancillary products available to your clients.
Short-Term Care insurance isn’t a replacement for long-term care; but for many clients, it’s a value-based solution. As an agent, it’s a chance to educate, protect, and build lasting client relationships.
So if STC isn’t in your toolkit yet, it’s time to take a closer look. Your clients (and your bottom line) will thank you.