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NAIFA's Limited & Extended Care Planning Center

The LECP Center empowers professionals to network with solution and service providers to share best practices, directly access subject matter experts, research, training and resources; and provide thought leadership so we may continue to address the changing needs of the market.

This article is a continuation of Jamie Sarno's series on Short-Term Care Insurance. You can read the first part of the series here and the second part of the series here.

After posting the last two articles and hosting the short-term care webinar here at NAIFA, I have been inundated with emails and phone calls — all asking for more information on short-term care.  

What I heard, from the majority of you, is that you need and want a solution when long-term care coverage is not possible for your clients — due to their age, health, or finances.

Here are just a few reminders on why the STC process can be easy and much more forgiving than traditional LTC coverage:


  1. The electronic application consists of simple Yes or No health questions.

  2. Electronic prescription drug background check is fast and user-friendly.

  3. Issue ages from 50 to 89 years old.

  4. No medical records or paramedical interviews are necessary to issue coverage.

Speed of Decision

An electronic application's typical speed to the decision is two minutes.

Placement Rate

84% of submitted applications are issued for guaranteed renewal coverage.

In addition, LTC renewal premium rates continue to rise and there is ample advice to policyholders on how to manage those increases. For example, industry experts recommend policyholders to, “shorten your benefit period” or “increase the elimination period." I’ve also heard the advice to, “reduce the daily benefit." While I agree these suggestions are better than dropping coverage, I am also extremely concerned. Conversations with clients are difficult when premiums double, but the monies necessary for care will be costly and immediate. Those funds must come from somewhere and we all know where — your client’s wealth portfolio. 

STC coverage can be beneficial in these situations. A duration of 90, 180, 270 or 360-day benefit, which starts on day one, can be the right solution not to cause a run on one’s financial portfolio. For example, a 360-day benefit can pay up to $144,000, thus helping protect your client’s investments and savings.

More education on STC plans and how they work is a must. I look forward to hosting additional webinars and ask anyone interested to please send in your questions. We can better serve our clients by educating ourselves on new alternatives that can help protect our clients' financial well-being.

If you would like more information on short-term insurance care, please send me an email or give me a call.

Jamie Sarno

Want to learn more from Jamie about short-term care? Then watch his recent webinar, "An Alternative to Long-Term Care Coverage," on-demand in the LECP webinar archives.

Watch On-Demand