The statistics are that somewhere between 50% and 70% of people over the age of 65 will require fairly significant long-term care services at some point in their life; meaning they’ll need assistance with at least a couple of activities of daily living, such as eating, dressing, or bathing, and possibly even a higher level of care.
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, especially for men. Therefore, a Long-term care policy which may pay for 2 years, or more, is much more expensive than a short-term care plan.
The Short-term Care plan provides a daily care benefit to be used for nursing home expenses and/or home health care. Individuals may choose a per day benefit.
The typical Short-Term Care insurance policy provides coverage for 1 year or less. For many people, this is a very appropriate and affordable amount of coverage.
The majority of policies have a 0-day deductible (Elimination Period) and almost a full year of benefits, (360 days). Simply put, 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.
Medicare and other health insurance policies cover medical expenses but not custodial care. People on average buy long-term care coverage in their 50s and 60s, according to the U.S. Department of Health and Human Services.