Actually, long term disability insurance and long term care insurance are not the same type of policy nor do they cover the same things. Disability insurance is to replace a percentage of your income when you have an illness or injury so severe you can no longer work. Long term care insurance is primarily for your aging years to cover home health, assisted living and nursing homes when you are no longer able to take care of yourself. Long term disability insurance should be purchased at a young age as soon as you go to work earning a wage. Long term care insurance should be purchased between your late 50s or early 60s.
No, Disability Insurance and Long Term Care Insurance are not the same. However, they are more alike than they used to be.
Disability Insurance pays you cash during each week that you are unable to work. You can use this cash in any way that you want.
Long Term Care Insurance policies in the past would pay the nursing home if you were unable to care for yourself. Many newer Long Term Care policies give you the option of receiving a cash benefit to use as you wish. When it is determined that you need assistance to take care of yourself, these LTCI policies pay you cash to pay for a caregiver in your home, to pay for assisted living, or whatever arrangement works best for you.
The trigger for Disability Insurance to kick in is being unable to work at your place of employment. The trigger for Long Term Care Insurance to kick in is to be unable to perform two or more ADL's for an extended period of time.
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Disability Insurance pays you cash during each week that you are unable to work. You can use this cash in any way that you want.
Long Term Care Insurance policies in the past would pay the nursing home if you were unable to care for yourself. Many newer Long Term Care policies give you the option of receiving a cash benefit to use as you wish. When it is determined that you need assistance to take care of yourself, these LTCI policies pay you cash to pay for a caregiver in your home, to pay for assisted living, or whatever arrangement works best for you.
The trigger for Disability Insurance to kick in is being unable to work at your place of employment. The trigger for Long Term Care Insurance to kick in is to be unable to perform two or more ADL's for an extended period of time.