As many of you know, I am an avid dog lover. Whenever I go out of town, I trust our dog sitter, T, to care for my dog. T is a great guy who left the corporate world years ago and now makes a comfortable living driving for Lyft and caring for dogs.
Last week, while I was away, I received a text from T letting me know that he had slipped in a parking garage and was at the ER waiting for hip surgery.
While T was in the hospital, his wife watched our dog. When we picked up our pup, she explained that her sister was flying in from out of state to help them out. While the sister will certainly be helpful in some areas, T is much larger than both his wife and sister, so once he leaves the hospital, he will likely face significant challenges with the Activities of Daily Living.
This situation highlighted an important issue: If T had purchased a Long-Term Care policy, he could have been reimbursed for home care, which would have made a big difference during his recovery. For those with smaller budgets, Short-Term Care insurance can be a lifesaver, and this is something I plan to discuss with T when the time is right.
Short-term Care Insurance: More Options
Short-Term Care is available in T’s state and these policies are available in most states (though not all). These plans have more relaxed underwriting and are generally less expensive than traditional Long-Term Care policies. They pay a cash benefit and some even offer inflation riders that increase the benefit by up to 5% annually. Additionally, many of these plans feature Restoration of Benefits, which means the benefit is restored if a client goes on claim, then stays off claim for 6 months to a year (depending on the carrier).
I’ve also heard of people getting creative by stacking multiple short-term plans to build a robust coverage strategy for their care needs. It’s too late for T. and his family to benefit from having any kind of Extended Care -Short or Long-Term, but there’s time to start planning for the future since an accident can happen any time.
If you’d like to learn more about your options for care coverage, feel free to reach out to me at carly@cjbins.com or 510.342.2670.