Is a Short-Term Care Product Right for Your Client?

Before we get started, how familiar are you with short-term care?

Short-term care is an ancillary product that works like a Hospital, Cancer, or Accident Plan. When meeting the basic requirements, it offers a cash benefit toward daily needs, whether medical or other concerns such as assistance with personal or household needs. It is theirs to do as they see fit. The Short-Term Care (STC) product will help with expenses when your client requires surgery, experiences an unexpected injury, or experiences a medical condition that limits their ability to perform enough daily activities to care for themselves.

For example, a client who has had hip surgery rehabs at a facility for the required time. They are then sent home to continue the healing process. Having the STC benefits available to them would ease concern and keep the healing process progressing, lessening the chance the client returns to rehab or worse.

Why should I offer this product to my clients? 

If you’re working in the Medicare market, you’re working with clients on the verge of retirement or already enjoying it. Many plan for the expenses of living an active life in retirement, but they ignore or make light of something happening to them where they would need some extra help. You surely have heard, “I took care of my kids; now it is time for them to take care of me.” Or “Just drop me off (and they name their preference of woods, water, etc). This product may be an affordable option for your clients to help put them and their close family and friends at ease.

Highlights of a Short-term Care Product:

• The ability to stay at home if possible
• Cover the client during the elimination period of a Long-Term Care (LTC) Plan that the client may have. The typical elimination period is 90 days.
• When LTC is too expensive, STC can be an affordable option to alleviate some of the financial strain.
• Underwriting for an STC plan is more forgiving than an LTC plan.
• A client can be denied LTC and still may have the option for STC.
• Plan acceptance can be immediate, lasting just a few days, whereas LTC may take months.
• Suppose you are still working and have a short-term disability. In that case, STC will coordinate with that and allow you to comfortably stay home, as short-term disability typically only covers 60% of your income.

Like the other ancillary products, an STC plan is also great because it is simple all the way around. Getting appointed, learning the product, vetting your clients, and the electronic enrollment for the carriers are so simple. The best part is that there are no certifications annually!

As agents, we get many emails about different products to offer, but this is one you may want to consider adding to your portfolio. Your clients are also seeing and hearing about these products. Bringing these products to them will help you retain their business rather than losing it to your competitor. Offering STC to your client gives you another way to generate more income for yourself! The commissions received will compensate you generously for the time spent discussing and enrolling in these products. It’s a win-win!

When Can I Offer These Products?

Of course, you cannot offer it during the Medicare Review appointment, but what about following up during a slower time of the year? It is a great touchpoint to reach out to your clients. As I always say, if you aren’t talking to your client about this, someone else will! We are responsible for offering the products to our clients and letting them make the final decisions that meet their needs.

Personally, I keep a checklist of things I should mention to them in our phone calls or appointments. Whenever I speak to them, I check off each topic or product from this list. This ensures that I am doing my job as an agent, offering products to protect their assets and put their minds at ease should something arise.

I encourage you to add this product to your portfolio. UIG is a national FMO that offers the top contracts with the top national carriers. This ensures our agents can have the most comprehensive portfolio available. If you want to add a Short-term care product, please contact the Brokerage Team. We can help you figure out which carrier to add, walk you through contracting, and train you on how to bring these products up to your clients!

UIG Brokerage Division: (800) 878-1058, ext. 1380
Email: [email protected]

Written by:  Libby Elliott, Broker Sales Specialist