When talking to clients about preparing for unexpected expenses in retirement, long-term care often takes center stage. In many cases clients should consider short-term care. Short-term care insurance is an underutilized but very valuable product that can offer peace of mind and financial protection for clients facing temporary health challenges.
Here’s a breakdown of why agents should consider introducing short-term care plans as part of a well-rounded retirement strategy.
Short-Term Care Insurance
Short-term care insurance is designed to cover care and services for a limited time, usually up to 12 months. It can be used for home health care, assisted living, or skilled nursing facility services following an illness, injury, or surgery. Unlike long-term care insurance, it is more affordable and easier to qualify for.
Benefits of Short-Term Care Plans
Affordable Premiums
Short-term care plans typically have lower premiums than traditional long-term care insurance, making them accessible for clients with tighter budgets or those who may not qualify for long-term care due to age or health issues.
Simplified Underwriting
Quick Benefit Triggers
These plans often come with simplified underwriting, which means no medical exams; just a basic health questionnaire. This is ideal for clients who may not qualify for more comprehensive long-term care plans.
Short-term care plans generally begin paying out benefits much sooner than long-term care insurance, often with little or no elimination period. This is crucial for clients needing immediate care after an unexpected health event.
Watch a quick YouTube video of why you should offer ancillary products with Medicare sales
Flexibility of Care Settings
Clients can use their benefits in a variety of settings, including at home or in a facility. This provides them greater choice and comfort during their recovery.
Bridges the Gap
For clients waiting for long-term care coverage to start or who may have gaps in their existing coverage (like Medicare), short-term care can provide vital coverage during this period.
When to Recommend Short-Term Care Insurance
- Clients nearing or already retired who don’t qualify for long-term care insurance may consider short-term coverage.
- Those concerned about high out-of-pocket expenses for short recovery periods.
- Individuals looking to supplement Medicare or a high-deductible health plan coverage.
- Clients who want a cost-effective safety net without having to commit to a more expensive long-term care policy.
Thoughts for Agents
Short-term care insurance isn’t just a backup plan; it’s a proactive solution. As agents, offering this option shows clients you understand all their retirement healthcare coverage needs. It’s also a great way to differentiate your services by providing options that are both practical and affordable.