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Life Health > Long-Term Care Planning

LTC group forms short-term care division

By Allison Bell

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The American Association for Long-Term Care Insurance (AALTCI) has set up a National Advisory Center for Short Term Care Information.

AALTCI says the center will provide STC market information; educate consumers, producers and others about STC products; support STC advocacy efforts; and, if member companies are interested, work with member companies to develop STC market standards.

An STC policy is an insurance policy that pays for nursing home care, home health care or similar services, but for one year or less.

See also: Psst! I have a secret (product)

The center has started operation by publishing a collection of STC data from CSG Actuarial.

Actuaries at CSG looked at STC policy benefit periods, for example, and found that 92 percent of the STC issuers offer a policy with a 360-day benefit period, and 50 percent offer a policy with a 90-day benefit period.

Two-thirds of the policies offer coverage with no elimination period, and one-third offer consumers a chance to hold down premiums by taking a 30-day elimination period.

Issuers offer a rider that provides 5 percent compound inflation protection with about 58 percent of the STC policies the actuaries analyzed.

See also: The Short Term Care Revolution

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