Short-term care insurance (STCI) is a product that life and health agents can still sell to consumers ages 71 and older.
The National Advisory Center for Short-Term Care Information reports that 40 percent of STCI buyers were ages 71 or older when they bought their policies, and 4 percent were 81 or older.
The center, a new arm of the American Association for Long-Term Care Insurance (AALTCI), based those figures on results from an analysis of data on 30,000 STCI policies issued by nine STCI issuers.
Only 9 percent of the issuers’ STCI buyers were under 61, and one of the participating issuers said it’s willing to consider applications from 89-year-olds.
An STCI policy pays for nursing home care, home health care or other types of non-acute ongoing care for less than 12 months.
Long-term care insurance (LTCI) issuers and sellers have traditionally thought as the STCI market as being completely separate from the LTCI market, but, in recent years, ultra-low interest rates have hurt insurers’ ability to offer any product that associated with long-lasting benefits obligations, including LTCI.