As more baby boomers retire, sales of short-term care insurance policies grow 20 percent.
With the wave of baby boomers entering their golden years, sales of short-term care insurance policies grew 20 percent last year, a report by the National Advisory Center for Short-Term Care Information found.
“Insurance agents are selling more short-term care insurance to seniors to fill gaps in Medicare and as a long-term care planning alternative when cost, age or health is an issue,” said Jesse Slome, director of the National Advisory Center. The organization analyzed sales and claims data from seven leading short-term care insurance companies.
Last year, sales of short-term care insurance policies increased by 20 percent compared to the prior year.
Short-term care policies generally provide coverage for up to 360 days and can pay for home care assistance, assisted living and skilled nursing home care costs.
“These policies are ideal for individuals concerned about the cost of traditional long-term care insurance,” Slome said. “It’s a great option for people who waited too long to start the long-term care planning process.”
Four in 10 long-term care insurance claims last one year or less.
“For many people, a year of short-term care insurance coverage is all they’ll need,” Slome said. “Plus, it can be easier to qualify to receive benefits, a definite advantage when care is ultimately needed.”
The average annual cost for individuals purchasing short-term care insurance last year was $1,043, a 5 percent increase over 2014.
The National Advisory Center advocates for the importance of planning and supports insurance and financial professionals who market short-term care insurance products. To learn more call the center at 818-597-3205 or visit their website at http://www.shorttermcareinsurance.org.