Short-term care insurance is emerging as a major player in the health care world, boosted by high prices for long-term care insurance.
The National Advisory Center for Short Term Care Information reports that 26,237 short-term care policies were sold during the first six months of 2015, a 71 percent increase over the same period from the previous year.
The same group reported that premiums for short-term care plans also rose more than 50 percent during that time.
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People have been talking about the rising costs of long-term care insurance for years, and there is no indication that the trend will soon reverse. In the past year alone, prices for long-term plans went up 8.6 percent.
Short-term care policies typically offer coverage for a year or less, and are often marketed as "recovery care" plans, designed for people who seek temporary care while recovering from an injury or illness. However, it is also an option for those who seek long-term care but simply can't afford it.
There is heightened interest for short-term care insurance policies among agents who recognize they meet the needs of individuals, especially those who cannot afford or health-qualify for traditional long-term care insurance," said Jesse Slome, executive director of the American Association for LongTerm Care Insurance.
According to an explanation by Raymond Smith, an insurance expert who runs a website devoted to long-term care, short-term policies are ideal for people with $20,000 to $60,000 in assets who seek living assistance for a short period of time that they know is not covered by their health insurance or Medicare.
Another trend in favor of short-term care insurance is the large number of people rejected by long-term carriers. Many have waited too long to try to enroll in a long-term care plan, and are already too elderly or ill to qualify. They may be eligible, however, for some short-term plans.
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