Short-Term Care Insurance

Short-term care insurance is an insurance policy that pays for up to 1 year of care that you might need in a nursing home, assisted living facility, or other skilled care facility.

Short-term recovery care is very similar to long-term care in that it’s used to protect your assets from being depleted by expensive care. While the benefits are largely the same, there are differences between short-term care and long-term care.

Short-term care Long-term care
Benefit periods of up to 1 year Longer benefit periods available
Very simple application Very lengthy application
High chance of being approved (average is about 90%) Low chance of being approved (average is about 50%)
Ability to apply up to age 89 After your 60s, your chances of being approved are low, and the cost is too expensive to maintain
Little to no rate increases Expensive and continuous rate increases
Affordable coverage Expensive coverage
Variety of carriers to choose from Few carriers offer this product anymore
Quick application turnaround Application takes a long time to process

Short-term care is preferred by a lot of people because of these differences, but the biggest downside to short-term recovery care is that you can only buy protection for up to 1 year. You may end up staying in a nursing home for longer than this, which can be a problem. However, just under half of people stay in a nursing home for less than a year, and having this type of coverage would be ideal.

We always recommend some coverage over no coverage at all, and short-term care is very affordable.

 Get a Short-Term Care Quote

The alternative to short-term care and long-term care would be a life insurance policy that has a built-in nursing home benefit. This is called a life insurance policy with a long-term care rider.

You can read more about that here.