Recovery Care Insurance

Recovery care insurance, also known as short-term care insurance, is very similar to long-term care insurance. Both plans offer coverage that assist in paying for homecare, as well as assisted living and nursing home, when you are unable to take care of yourself. Some of the key differences is that recovery care is a short-term version of long-term care insurance that is designed to provide benefits up to 12 months or less. Recovery care pays in addition to Medicare, while long-term care does not. It also does not require a medical exam, so the application process is faster and simpler than long-term care insurance. On top of that, you can purchase recovery care insurance up to age 89, while long-term care insurance usually has a cut-off age of 75 for issuing policies (depending on the carrier). And most recovery care policies go into effect immediately, while long-term care usually has a 90-day waiting period before benefits are paid.

But even though there are several differences between the two types of policies, the trigger for their benefit payment is the same. Both require that the insured cannot perform at least two of the six activities of daily living without assistance. Those activities are eating, bathing, transferring in and out of a bed or chair, dressing, toileting, and continence. Or another qualifier would be if the insured has severe cognitive impairment. Recovery care is usually the best alternative when a person has been declined for traditional long-term care insurance, is over 80 years old, wants to cover the elimination period gap with their long-term care policy, or they cannot afford traditional long-term care insurance.