Know Your Long-Term Options: Care Insurance vs. Disability Insurance

Sep 3, 2015

Without a doubt, most individuals 65 or older (at least 70% of them to be exact) will require some form of long-term care during their golden years. Dealing with the costs of such care can be overwhelming, which is why certain insurances exist to help ease the burden.

It can often be difficult to decipher the differences between long-term care insurance and long-term disability insurance at first glance, however, it’s important to know what each brings to the table. Both can be great to have to fall back on, but for completely different reasons in completely different scenarios.

How does long-term disability insurance work?

Long-term disability insurance is more of a precaution for the present than the future, though it impacts both. An illness, injury, or accident can occur without warning, leaving you unable to work for a prolonged period of time. Should this occur, long-term disability insurance protects you by ensuring that you will continue to receive a percentage of your income for a set period of time. Payments are typically around 60% of your previous wages and can be received up to the age of 65 if needed. This form of insurance will usually begin when short-term disability ends. Many employers will often offer this type of coverage. It is important to know how much income and what type of coverage you have if you currently have this benefit.

What does long-term care insurance cover?

Long-term care insurance anticipates your future needs and provides for the costs associated with long-term care beyond a specific age or time frame. Coverage can start at any age when a person can no longer perform at least two of six activities of daily living, or ADLs. These include dressing, bathing, eating, personal hygiene, toilet hygiene, and transferring (getting in and out of bed). Long-term care insurance will typically cover the costs of home care, assisted living, nursing homes, adult daycare, and even Alzheimer’s facilities.

Oftentimes, without long-term care insurance, these types of services can become a huge financial burden and leave individuals and families scrambling to make ends meet. While many employers offer long-term care insurance as part of a benefits package, many families will confuse this benefit with long-term disability. It is important to determine whether or not your employer offers this type of coverage, and if not, look at the possibility of purchasing a policy on your own.

For help deciding if long-term care insurance or long-term disability insurance is right for you and your family, contact the Law Office of Christina Lesher, P.C. at (713) 529-5900 or online today.

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