Long Term Care

Declined Long Term Care Insurance Applicants Have More Available Options

October 31st, 2016
 Declined Long Term Care Insurance Applicants Have More Available Options

LOS ANGELES, CA--(Marketwired - Jun 4, 2015) - As many as 45 percent of individuals who apply for long term care insurance are declined coverage. For these individuals and others seeking affordable protection, a little-know option exists.

"Short-term care insurance which is sometimes referred to as recovery care insurance can provide millions of older Americans with meaningful and affordable protection for their care needs," states Jesse Slome, director of the American Association for Long-Term Care Insurance (AALTCI). The Association recently launched the National Advisory Center for Short Term Care Information.

The standard short term care insurance policy provides coverage for one year or less. As a result, policies are less costly than traditional long-term care insurance policies that can provide benefits for longer periods of time.

"These policies are ideal for individuals in their 60s and 70s who can not health-qualify for traditional LTC coverage or those seeking a more affordable option," Slome advises. According to AALTCI's latest research, 21 percent of those who applied for long term care insurance between ages 50 and 59 were declined by insurers last year. "Almost half (45%) of those who applied between ages 70 and 79 were declined because they had health issues. For many of these individuals a short-term care policy is a great alternative option."

While the typical buyer of short-term care insurance is between the ages of 65 and 75, some insurers will accept applicants who are age 80 and even older. Most policy applications ask between seven and 12 health-related questions. "If you can answer no to all the questions, you are 90% through the health underwriting process."

An Affordable Option To Traditional Long-Term Care Insurance

Like traditional long-term care insurance policies, short term care policies will pay for home care as well as care in a skilled care setting such as a nursing home. "A typical benefit amount might be $100 or $150-a-day which will pay all or much of the cost for home care services," Slome acknowledges. The policies also can pay in addition to Medicare, something a traditional LTC insurance policy is prohibited from doing.

"While some long-term care insurance claims last for many years, almost half of all claims last one year or less," Slome shares. "Having some protection is always better than having no protection at all making the short-term option very attractive to millions."

Experts also share it is generally easier to get accepted for coverage with policies of this type. The National Advisory Center for Short Term Care Information posted examples of short term care application questions on its website. "If you can answer 'no' to the questions, you are 90 percent on your way to being accepted for coverage," Slome shares.

Short term care insurance policies offer multiple options, often similar to traditional LTC insurance according to Slome. "The typical premium for someone age 65 is about $100-a-month," he adds. "For someone age 70, it's about $150-a-month."

Policies are not available in all states and some states like New York and Florida offer limited options. For information on short term care insurance costs call AALTCI's Advisory Center at (818) 597-3227 or visit the Association's website at www.aaltci.org.