Nearly one in five Americans is a caregiver, and that number is rising significantly. Not only are more older adults preferring to age in place in their homes, but a large number are also being cared for by the “sandwich generation” — the group who looks after their parents and their children simultaneously.
A caregiver is someone who tends to the needs of a person with short- or long-term limitations due to illness, injury, or disability. While this includes professional caregivers, such as doctors or nurses, it also includes family members or friends who provide care in any capacity, like cooking, cleaning, managing finances, and monitoring medical conditions.
According to the 2025 Family Caregiver Annual Report and Statistics, caregivers who don’t live with their loved ones spend roughly 20 hours per week on caregiving duties. Those who do live with their loved ones are caregiving an average of 37 hours per week. More than half of family caregivers are women (59%) and also work full-time jobs (53%).
It may come as no surprise that many caregivers report some level of stress or strain, whether it be emotional, financial, or physical. But financial stability is one of the top concerns among the sandwich generation — theirs and their parents’. Financial markets in the current political climate have left many retirees and those caring for them with smaller savings. This not only affects the sandwich generation’s own retirement plans but their ability to save for their children’s higher education.
Medicare Parts A and B cover some home health services and inpatient skilled nursing facility care costs, but they don’t cover extended care. Part A copays and the Part B deductible usually apply, which could mean steep out-of-pocket costs.
Finding resources and seeking help is vital for caregivers to make sure they’re able to take care of themselves and their loved ones.
Long-term Care insurance is a supplemental policy that can help pay for long-term custodial care in a nursing home or assisted living facility. However, Long-term Care insurance policies generally have a 90- to 180-day elimination period, which is the set length of time between when an illness or injury starts and when the benefit payments kick in. In other words, policyholders have to wait 90 to 180 days before receiving benefit payments.
Short-term Care insurance is a supplemental policy that can offer financial protection up to 12 months following an injury or illness. It covers both medical and non-medical help. It pays a daily benefit amount for each day you receive care and helps cover out-of-pocket expenses that Medicare and other health insurance plans don’t.
Short-term Care insurance is also an option if you don’t qualify for or can’t afford Long-term Care insurance — or if you’re in need of gap coverage during the Long-term Care insurance elimination period. Short-term Care insurance usually has fewer restrictions on the types of care it covers and who qualifies.
“Being a caregiver can be challenging. Short-term Care insurance could be a potential solution to help cover the costs of using professional caregivers to help with that responsibility,” says Erin Bueltel, Director of Product Solutions for Wellabe. “Policyholders can submit claims for home health care services and — if part of their plan — care received in a facility. By using professional services, friends and family are able to focus on being there for the policyholder in ways other than providing necessary care.”
You can start care planning for yourself or your loved ones. Check out these senior care and caregiving articles:
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Wellabe offers life and supplemental health insurance plans to help you prepare for good days and bad. We’ll always be here to empower you to be well — well prepared, well protected, and well loved.
