How to Pick the Right Short-Term or Home Care Plan: 7 Essentials That Matter
If you’re approaching retirement or helping a loved one plan for future care, you’ve likely thought about the consequences of extended care. Aging, chronic illness, and mobility issues increase the need for help with daily living activities we normally take for granted.
The problem is that traditional health insurance and Medicare only cover short-term skilled care, leaving most families short of the funds needed for quality long-term care services. The impact on loved ones can be a huge burden, and the high cost of services can be financially devastating for many American families.
- Find current and projected cost of long-term care services in your zip code.
In the past, consumers had two insurance options: traditional Long-Term Care Insurance and hybrid policies that combine life insurance or annuities with a qualified rider to cover long-term care services.
Today, you may have noticed a shift. Short-Term Care (STC) and Home Health Care (HHC) plans, once niche insurance options, are now among the fastest-growing alternatives to traditional Long-Term Care Insurance.
Consumers and Long-Term Care Insurance specialists alike are asking for three things:
- Less underwriting, so more people qualify for coverage.
- Simpler plan design that’s easier to understand.
- Lower cost without losing meaningful coverage.
These plans stand out because they often pay cash indemnity benefits rather than the reimbursement of bills and don’t require a 90-day doctor's certification to begin benefits. You get paid faster, with fewer administrative hurdles.
7 Essentials of a Short-Term Care or Home Health Care Plan
But not every plan delivers the same value. Before you decide, it helps to understand the seven essentials that define a strong Short-Term Care or Home Health Care plan.
1. State Availability
Unlike traditional long-term care or hybrid life-LTC policies available in nearly all states, Short-Term Care and Home Health Care products are approved in fewer than 40 states.
States such as California, New York, Florida, Massachusetts, Vermont, Washington, and Minnesota are among the most restrictive. Check with your agent to confirm whether a plan is approved where you live.
2. Simplified Underwriting
Underwriting can determine whether you qualify for coverage. Fortunately, STC and HHC products make the process much easier.
RELATED: What is Underwriting?
Short-Term Care Insurance applications typically include 11 to 15 yes/no health questions and a pharmacy check. There’s usually:
- No medical exam
- No Attending Physician Statement (APS)
- No face-to-face interview
Some carriers don’t even report to the Medical Information Bureau (MIB) or ask about your height and weight.
Home Health Care products are even simpler, with sometimes just three or four health questions, no drug screening, and no medical records or personal interview required.
Coverage is generally available from ages 40 to 89, making these plans a good option for older adults who may not qualify for traditional Long-Term Care Insurance due to pre-existing health issues or age.
3. Unisex Rates
Traditional Long-Term Care Insurance policies switched to gender-based pricing years ago because women use more care. STC and HHC plans, by contrast, use unisex rates, so men and women pay the same for equal benefits.
Rates are typically based on your actual age (for STC) or attained age (for HHC, in five-year age bands). While insurance carriers reserve the right to raise rates, there’s no historical record of rate increases on these plans.
Expect:
- 10% discount if both partners apply and are approved.
- 10% premium increase on average for tobacco users.
Unisex pricing makes these plans particularly cost-effective for women and couples purchasing joint coverage.
4. Discounts That Reward Couples and Households
Short-Term Care and Home Health Care plans don’t have “preferred” or “super-preferred” rate classes, but they do offer household and couples discounts.
If two people, spouses or domestic partners apply together and both are approved, each typically receives a 10 percent discount.
Some carriers extend additional savings when both applicants choose identical benefits or when certain riders are shared.
5. Built-In Features That Add Real Value
You don’t have to sacrifice flexibility for simplicity. Leading Short-Term Care and Home Health Care plans often include:
- Facility and home-care cash benefits
- Zero-day elimination periods for immediate access
- Restoration of benefits after recovery
- Inflation protection options
- Hospital indemnity and hospice benefits
- Prescription drug reimbursement
Premiums vary by age, health, and benefit level. For example, a 61-year-old nonsmoking male could expect monthly premiums ranging from about $90 to $160, depending on plan design.
6. Optional Riders Worth Considering
Riders allow you to customize your plan for an extra cost. Common add-ons include:
- Additional Home Health Care or Facility coverage
- 5% compound inflation protection
- Hospital indemnity or adult day care riders
- Return-of-premium benefits
- Dental, vision, and hearing (DVH) coverage
- Accidental death or ambulance riders
Your best strategy is to separate “need-to-have” from “nice-to-have.” Ask your Long-Term Care Insurance specialist which riders truly fit your health, lifestyle, and financial goals.
7. The Value Proposition: Why Price Isn’t Everything
When it comes to insurance, price often dominates the conversation. But the cheapest plan isn’t always the best fit.
A carrier offering the lowest premium might not operate in your state or may decline your application based on health.
The better question is: “What’s the best value for my circumstances?”
Affordability drives the popularity of these plans, but the right balance of benefits, riders, and waiting periods makes coverage both sustainable and effective.
Remember: Some protection is always better than none. A well-designed plan can help you stay independent and spare your family from emotional and financial stress.
Why These Plans Matter More Than Ever
According to the U.S. Department of Health and Human Services, about 56 percent of adults age 65 and older will need some form of long-term care service during their lifetime.
Yet most Americans have never discussed how they’ll pay for that care. During the pandemic, 61 percent of older adults said they’d rather die than enter a nursing home, and 86 percent told AARP they want to remain at home as long as possible.
Short-Term Care and Home Health Care policies help make that possible, especially if you can’t qualify for or afford traditional Long-Term Care Insurance.
Plan Today, Protect Tomorrow
If you haven’t yet reviewed your extended care options, now is the time. Compare plans, understand eligibility, and consult a licensed specialist who works with multiple carriers.
As motivational speaker Zig Ziglar once said, “You can get anything you want in life if you just help enough other people get what they want.”
If you are preparing for your retirement, consider helping your parents as well if they have not yet planned for the consequences of aging.
Today, there are many options available to plan for extended care. When you plan for care, you’re not just protecting yourself; you’re helping your family secure peace of mind.