Short-Term Care Insurance: Easier Approval And More Affordable Compared To Long-Term Care Insurance

Updated: May 7, 2020 at 12:49 pm

What Is Short-Term Care Insurance? - Blog for My Family Life InsuranceHave you heard of short-term care insurance? No? Well, you surely have heard of long-term care insurance. Anywhere you read or hear, someone is talking about the need for long-term care.

It can be hard for a person to qualify for long-term care insurance. Moreover, they may not like the thought of committing a large premium. They want coverage, though. All of that stress can make someone stuck and not progress to a better situation.

Enter short-term care insurance. Let’s talk about short-term care insurance in more detail.

In this article, we will discuss:

  • what is short-term care insurance?
  • underwriting
  • the carrier we like for short-term care
  • who could use this insurance

What Is Short-Term Care Insurance?

Enter short-term care insurance. Short-term care is very similar to its long-term care insurance cousin. Short-term care covers essentially the same things. The difference is that the benefit period is shorter, up to a year.

Short-term care will cover costs associated with:

  • home health care
  • assisted living costs/facilities
  • skilled nursing home costs
  • adult day care/hospice care
  • nursing home care

Similar to that of long-term care policies.

Benefits vary by carrier, but short-term care insurance essentially covers similar costs as those covered by long-term care insurance.

It’s important to note that some plans only cover home health care, whereas others will cover much more. You need to do your homework and understand your options. That is the only way you can make an educated decision.

How Long Do Benefits Last?

While long-term care insurance benefits can last 2 years or more, depending on your plan and selection, short-term care benefits typically last up to 1 year. Hence the name, “short-term” care.

Worried you won’t have enough coverage? You should know that almost half of claims are for 1 year or less. Moreover, if you are worried about costs lasting beyond a year, we developed a strategy that can save you money if needs last beyond a year. We discuss that more in a minute.

How Do You Qualify For Benefits?

You qualify the same way as with long-term care insurance. You must be under the direction of a licensed healthcare practitioner. The practitioner states that you can’t perform 2 out of the 6 ADLs (activities of daily living) or you are cognitively impaired.


Underwriting For Short-Term Care Insurance

Underwriting is generally easier than long-term care insurance underwriting. Usually, there are no medical exams to take and no cognitive screening. Also, there usually is no paramedical exam, either.

In many cases, people who were declined for long-term care insurance have had success in obtaining short-term care coverage.

Most of the time, you have to answer a “yes/no” questionnaire. Here’s a snapshot of one popular plan’s questionnaire.

to show short-term care insurance underwritingSometimes, the carrier requires a phone interview.

The underwriting department will do the usual stuff like look up your application history in the MIB and your prescription drug history.

No different than applicants for long-term care, short-term insurance applicants tend to be in their 50s and beyond into retirement age.

Other Facts About Short-Term Care Insurance

  • These policies pay in addition to Medicare pays (remember, Medicare does not cover long-term care). Long-term care does not.
  • Rates are usually not gender based as they are with long-term care insurance. That means women could save a lot of money compared to that of a long-term care policy.
  • Benefit amounts can range from $100 per day to $300 per day.
  • 0 day deductible/elimination period available. Contrast with long-term care which is typically sold with a 90 day deductible/elimination period.
  • Typically people up to age 90 are eligible.
  • Depending on the state and the coverage selected, a person could save over 50% compared to a comparable long-term care quote.
  • Most short-term care policies come with optional benefits and riders, such as a hospital indemnity plan.

Premiums On A Short-Term Care Plan

So, premiums will vary based on you and if you want additional benefits or riders. To give you an idea, though, here is a very preliminary of one carrier’s rates. The premiums below represent the maximum benefit. If you don’t need the maximum, your premium will be much less.

Note that some carriers may be less due to household or non-tobacco discounts. It’s always important to compare apples-to-apples as best you can.

Carriers That Offer Short-Term Care Plans

There are several carriers we like to work with. These carriers offer similar plans, but they can be different in many ways. These carriers include:

  • Aetna
  • UCT – one of the cheapest rates and offer spouse and non-tobacco discount
  • Medico
  • GTL

Which one do we use? Well, the one that we can get you through underwriting and offers the lowest premium for your situation.

Who Could Use Short-Term Care Insurance?

You might wonder if short-term care is right for you. Short-term care insurance works well for someone who:

  • was declined from traditional long-term care insurance
  • wants a less expensive option
  • waited too long to purchase home health, assisted living, or nursing home care
  • wants to cover the elimination period of long-term care
  • is comfortable with taking the risk of being in a long-term care situation beyond a year (almost 50% of long-term claims are 1 year or less, so a short-term care plan may work well.)

Final Thoughts

We at My Family Life Insurance can help determine if this insurance is a viable alternative to a long-term care insurance policy. Feel free to call, text, email, or use our contact form to get in touch with us. As we have said before, there is no risk to contacting us. Why? Because we have duty of care for you and work in your best interest. If a short-term care plan isn’t right for you, then you’ve learned something new, and we will part as friends. Seriously! That is how we operate. We will be happy to help.

Learn More

Interested in learning more about the information in this article? Fill out the form below and we will email you additional customer literature, explaining these options in more detail. We are here to help and work only in your best interest.

Is Accident Insurance Worth The Money?

Updated: June 7, 2020 at 8:54 am

Is An Accident Plan Worth The Money? - Blog for My Family Life InsuranceSome say yes, others say no. We at My Family Life Insurance say that accident insurance is worth the money; however, as we always have said, the decision depends on your unique situation. Is accident insurance worth the money for you? Read on to find out more. In today’s health care and insurance environment, chances are, it is.

We first discuss what is an accident insurance policy.  Then, we describe the different policies themselves and the corresponding costs. We then describe how accident insurance is worth the money for many individuals and families.


What Is An Accident Insurance Policy?

An accident insurance policy will pay you a tax-free benefit upon injury from an accident, which means a sudden, unexpected, and unforeseen event. The plan typically pays via fixed benefit indemnity, which means a lump sum per a set payment schedule. However, some plans coordinate with your primary health insurance coverage. More on benefit options in a minute.

These plans will cover injuries from:

  • On-the-job and off-the-job accidents
  • Playing sports (some policies will not)
  • Recreational injuries
  • Just about any situation that involves an accident (there are exclusions, like the typical Acts of War, being incarcerated, etc.)

An accident insurance policy will cover:

  • Yourself
  • Your spouse
  • Your children

That means if your kids play sports and get hurt (provided that is covered), the injury and associated costs will be covered. If your spouse dislocates his shoulder while doing yard work, the injury and associated costs will be covered. If you slip on the bathroom floor while getting out of the shower and injure yourself, that injury and associated costs are covered.

I think you see what I mean.

Accident insurance will generally cover nearly all injuries and costs associated with an accident (as mentioned, there are exclusions). Some policies will even cover accidental death and dismemberment. In other words, there is a life insurance component if you were to die from accidental injuries.

Recently, other carriers have issued other types of accident insurance. As we mentioned, these types pay up to your health insurance’s out-of-pocket costs for any accident. In other words, they coordinate with your health insurance.

Some Exclusions

To recap, this insurance pays a benefit to you upon an accidental injury. It does not pay gradual “wear and tear” or other degenerative conditions.

If you are hurt committing a crime, that’s not covered. (Obviously.)

It’s important to review the limitations and exclusions of your policy. Nearly all insurance carriers have similar exclusions and limitations, although there are nuances.

Accident insurance also, generally, does not cover an accidental sickness. See our article on the best accident insurance policies which outlines some policies that cover accidental sickness (such as that from an accidental ingestion of poison, for instance.)


How Much Do I Receive?

It depends. The amount of benefit you receive depends on the injury and associated costs.

For example, you go to the ER for an injury. An accident policy might pay $300 for the ambulance, $500 for the ER visit, $1,200 for the surgery, $1,500 for the hospital admittance, and $50 for a physician follow up.

It doesn’t matter what other insurances you have; it will pay upon covered accidents and the corresponding treatments. The money goes directly to you. With deductibles, copays, coinsurance, and premiums seemingly increasing higher and higher, these accident policies can offset the cost and leave you a cushion.

Or, you can use the money however you want. Benefits are also income tax-free.

Good plans also cover accidental death and dismemberment. In other words, there is a life insurance component if you die from an accidental injury. Most plans will pay up to $100,000 for common carrier accidental death, $75,000 for car vehicle accidental death, etc.

As we mentioned, some plans pay up to the out-of-pocket maximum of your health insurance. For example, let’s say you broke your leg ice skating. Your bill is $2,430 dollars because you are in your insurance’s deductible phase. Your plan pays the $2,430.

With these “lump sum” plans, you have to select a “bucket of money” for the year. When the money runs out for the year, it runs out. The “bucket” replenishes every year.

Families with children will want accident plans that cover recreational and organized sports. Make sure your plan covers this.


How Much Does Accident Insurance Cost?

Thankfully, accident policies are usually affordable. Why are they affordable? Well, the probability of getting hurt from an accident is low.

However…

When it does happen (and let’s be honest, we have all had an accidental injury), the ensuing medical bills can be costly. A trip to the ER alone costs your insurance thousands. And, if you are in the deductible stage of your health insurance, you are paying for the entire bill.

So, for an individual, most accident insurance premiums cost between $20 and $30 per month, depending on the plan.

For a family, of course, it will be a little more. Maybe $50 per month or more.

Want to see the best personal accident insurance policies we like? Go ahead. We break it all down for you and did the dirt work so you would not have to.


Who Can Benefit From These Policies?

These policies can nearly help everyone. In fact, according to the National Safety Council, nearly 39 million Americans receive medical attention for non-fatal injuries each year. You might benefit from these policies if you:

  • have an active family, playing sports, etc.
  • have a hazardous job (some jobs are excluded, but most policies cover seemingly hazardous jobs like fishing, tree cutting, etc.)
  • enjoy hazardous hobbies like motorcycle riding, deep water scuba diving (hang gliding and rock climbing are typically excluded from policies)
  • want an accidental death and dismemberment benefit on your life insurance policy – we have found that, in most cases, the stand-alone accident plan cost less and offered more benefits than an accidental death and dismemberment rider on the life insurance policy
  • You drive long distances for work: tractor-trailer driver, a consultant, etc.
  • You want to offset the high out-of-pocket costs associated with your underlying health insurance plan

The last bullet point is the most common. Many individuals and families are facing higher premiums with their underlying health insurance. One way to offset that is to increase the deductible and therefore lower the premium. The accident insurance can then be purchased to fill the gap and pay for any deductible or out-of-pocket costs. In this case, we feel accident insurance is worth the money.


Who Should Not Purchase Accident Insurance?

Accidents can occur anywhere and anytime. That’s why we believe everyone should have some level of accident coverage; however, there are some people who should not purchase these policies. They include people and families who do not have a:

  • life insurance policy
  • disability income insurance policy
  • health insurance policy

If you do not have the above, you need to purchase those first before thinking about an accident insurance policy. Moreover, if you have enough emergency savings to cover the costs associated with an unexpected accident, you may not need an accident insurance policy.

These policies tend to have limits on ages. If you are age 70 or older, chances are an accident policy isn’t available. In that case, we recommend a hospital indemnity plan, which operates similarly as an accident plan. These plans cover hospital services and are useful in tandem with Medicare plans.


Now You Know That Accident Insurance Is Worth The Money

We at My Family Life Insurance believe the low monthly premiums combined with the extensive coverage benefits make accident insurance worth the money. It is only beneficial, however, if you have the aforementioned insurance already established.

Accident insurance policies pay a benefit upon a covered accidental injury. Moreover, they can act as accidental life insurance. In other words, if you die from an accidental injury, the policy pays a death benefit similar to that of life insurance.

We hope this article gave you a better understanding of accident plans. Do you think you and your family needs one? We at My Family Life Insurance can help you determine that. We always place your best interests first. If we feel you don’t need one, then we will tell you that. Feel free to call, text, or email us. Or, use the form below. We will be happy to speak with you.

Learn More

Interested in learning more about the information in this article? Fill out the form below and we will email you additional customer literature, explaining these options in more detail. We are here to help and work only in your best interest.

5 Good Reasons You Need Disability Insurance

Updated: August 3, 2020 at 10:43 am

5 Good Reasons You Need Disability Income Insurance - Blog for My Family Life InsuranceDon’t think you need disability insurance? Well, you probably do. One in 3 working adults will experience a disabling injury or illness lasting longer than 90 days. Considering that the odds that your house will burn down is 1 in 100, and you probably have an adequate amount of homeowner’s insurance, isn’t it time to protect your paycheck in case you can’t work due to a disability?

In this article, we discuss the 5 reasons you need disability insurance.`

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How The Definition of Disability Affects Your Benefits

Updated: March 13, 2020 at 1:58 pm

How The Definition of Disability Affects Your Benefits - Blog for My Family Life InsuranceAs they say, “It’s all in a name.” In this case, the definition of disability in your policy determines whether or not you will receive benefits from your claim.

The definition of disability is the “heart” of your policy. It is critical you understand how the carrier views your disability. The carrier pays (or not) the disability benefit based on this definition.

Let’s see an example of how important it is to understand your policy’s definition of disability.

 

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Fibs, Lies, and Life Insurance

Updated: March 13, 2020 at 7:03 am

Fibs, Lies, and Life Insurance - Blog for My Family Life InsuranceWhat Happens If You Lie On A Life Insurance Application?

The answer: it depends on the intent. But, likely your application will be declined or your policy rescinded.

In this article, we discuss how lying on a life insurance application – or any insurance application – can impact you and/or your beneficiaries.

Continue reading Fibs, Lies, and Life Insurance