The announced plan by AARP to offer short-term care insurance is poised to significantly impact the industry predicts Jesse Slome, director of the National Advisory Center for Short-Term Care Information.
"I view this as a very positive development for the industry," shares Jesse Slome, director of the Advisory Center. "It has the potential to really put short-term care insurance on the map, to hopefully see the product approved for sale in all 50 states and to educate tens of millions of aging Americans about the value of this product."
Slome notes that short-term care insurance is a viable planning option for the large number of seniors who want to undertake some long-term care planning but for who cost, health or age is an issue. "Policies can provide the long-term care benefits that many people want such as care services in their own home," the expert notes. Policies can also cover a limited period of care in a skilled nursing home facility.
According to Slome, short-term care products are not currently approved in all states. "My hope is that together AARP and Medico will be able to show the value these products can provide as an affordable and highly adequate solution," Slome notes. He added that the State of Washington just enacted a state-approved policy that would provide some $36,000 of benefits for those needing qualifying home care services.
"I have always taken the approach that some protection is better than none and a significant percentage of people needing care would more than make due with the benefits of a short-term care insurance policy," Slome reports. "We obviously see value in this protection as do consumers."
The short-term care insurance state approvals directory can be accessed via the organization's website at www.shorttermcareinsurance/approvals
"Once the Medico AARP plan launches, I expect heightened awareness which will benefit agents who are appointed to sell short-term care insurance solutions," Slome concluded. "There are a few carriers currently offering such products and I bet news of the arrangement will propel interest among others."
The National Advisory Center for Short-Term Care Information was established by the American Association for Long-Term Care Insurance (AALTCI) to create heightened awareness among both consumers and insurance professionals. AALTCI was established in 1998 and advocates for the importance of long-term care planning. Slome also serves as director of the American Association for Medicare Supplement Insurance and organizes the Medicare and Senior Products National Sales Summit.
The American Association for Long-Term Care Insurance, the American Association for Medicare Supplement Insurance and the American Association for Critical Illness Insurance all advocate for the importance of planning and support insurance professionals nationwide. Jesse Slome, founder and executive director of the organizations, is a leading consumer advocate and author of numerous consumer and professional guides focused on retirement and insurance planning that have been published by governmental agencies and private organizations.