Quick Facts and Stats:

• • About 7 out of 10 people will require long-term care at some point in their lives.
  • The average cost of in-home care is around $5,000 per month, while a private room in a nursing home can cost $120,000 per year. 
  • Medicare’s coverage is limited and does not cover long-term care services.

Short-Term Care Insurance could be a viable option for clients seeking extended care protection.

Extended care health events such as home care or nursing home services can be a source of worry for retirees, those planning to retire soon, and even those in the middle of their careers. Many people may not be eligible for a traditional long-term care policy or may be unable to afford the cost of a comprehensive plan. However, Short-Term Care plans can be a suitable alternative to Long-Term Care Insurance, with shorter durations and lower costs. If your client has medical conditions or has been denied traditional Long-Term Care Insurance, or if affordability is a concern, it is worth exploring the option of a short-term care plan.

If you’re interested in marketing Short-Term Care plans, here’s some advice: a good way to start a conversation with your clients is to ask some simple questions. For example, you could ask them what they consider their most important asset. While they may answer their home or investment accounts, the reality is that their health is their most valuable asset. Another question you could ask is what their plan is for when their health changes and they require care. Often, the response is a spouse or family member, which may not be the most effective plan. Additionally, you could ask them whether they would prefer to go to a nursing home or stay at home if they require care. Home is often the preferred choice. Short Term Care could be the solution for all these situations.

Short-term care plans are a cost-effective solution that can be customized to suit most clients’ budgets. Unlike long-term care plans, short-term care policies come with very affordable premiums. On average, a short-term care plan costs $1,700 per year or $142 per month. The best part is that there is no need for any special product training or additional certifications to represent these products, and the commissions are pretty attractive too! Product availability varies by state among great carriers and products like OmniFlex with Manhattan Life, Wellabe (previously Medico), and Aetna.

For more information about what products are available for your clients, please contact Stacy Shill, CLTC, at sshill@shieldsbrokerage.com or call 603-418-0812.