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 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.
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.