Short-term care insurance, also known as recovery care insurance, is designed to provide coverage for individuals requiring temporary assistance with daily living activities due to illness or injury. This type of insurance typically offers benefits for a duration ranging from a few months up to one year, making it a viable option for those who need immediate care but do not require long-term support. 
Short Term Care Insurance is a type of insurance policy designed to cover the costs associated with short-term health care needs. These needs typically arise when an individual is recovering from an illness, injury, or surgery and requires assistance with daily activities for a limited period. Unlike long-term care insurance, which covers prolonged care over several years, short-term care insurance usually provides coverage for up to 360 days.
Consider the case of Mary, a 68-year-old retiree who lives independently. Mary enjoys good health, but she recently underwent knee replacement surgery. While her recovery is expected to be smooth, her doctor has recommended several months of physical therapy and assistance with daily activities such as bathing, dressing, and preparing meals.
Without short-term care insurance, Mary would need to pay out-of-pocket for these services, which could quickly become expensive and strain her finances. However, with a short-term care insurance policy, Mary can receive the help she needs during her recovery without worrying about the costs. The policy covers the cost of a home health aide who assists her with daily activities and ensures she follows her physical therapy regimen. This not only helps Mary recover more quickly but also provides her with peace of mind, knowing she won’t face a financial burden during her recovery.
