What does short term care insurance cost?
The cost is going to vary for short term care insurance based on your age and the policy you end up choosing. One great aspect about STC insurance is that it offers unisex pricing. With traditional long term care insurance, women cost more as they are more likely to live longer and utilize these services.
Below we have the prices for the two policies discussed above. They vary in price a bit, which is due to the offerings of each policy. Both have similar benefits for confinement, but they offer very different benefits for home health care.
With Policy 1, the home health-care benefits and maximum are separate from your use of facility care.
With Policy 2, you can use the $100 daily and the $35,000 maximum for either facility care or home health care, but not both.
These numbers can be decreased or increased depending on the waiting period, benefit days, and how large of benefit you would like daily or monthly. Policies also vary in the way they pay for days. While some count by calendar days, others count by service days. This means that if you are staying at home, and you do not need someone to see you every single day, this policy could be stretched out to pay for longer than a year.
Short term care insurance offers a great alternative to more expensive traditional long term care insurance. It gives your family protection from out of pocket expenses for a year so they can focus on getting your finances in place for if or when they take over paying the long term care bill. No matter what route you go, the most important thing is that you have some sort of plan in place. If you don’t, the people who suffer the most will be your family who have to do this last-minute planning
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