Short-Term Care Insurance
Short-term care insurance, also known as convalescent insurance, is a policy that offers between $50 to $300 per day of health care coverage for 180 to 360 days. Since there is no long-term commitment for the insurance companies, the premiums are normally less than traditional long-term care coverage options.
Since the premiums are lower and the coverage is only for a year or less, many applicants who are rejected by traditional long-term-care coverage may be accepted by short-term care insurance. These types of policies have short or no elimination periods, allowing benefits to start immediately for those in need.
With short-term care insurance, benefits normally reset. This means if someone files a claim but then recovers prior to receiving the full benefit, it is possible to file another claim in the future and receive coverage. Those under the age of 85 are normally eligible for this type of coverage.
While this type of insurance coverage can help those who are rejected for long-term care insurance, the brevity of the insurance coverage makes it only a short-term solution to long-term care coverage. However, Medicare offers post-hospitalization rehab for up to 20 days, making it possible to cover health care for slightly over one year if short-term care insurance is taken out after that 20-day period.