Long-Term Care vs. Disability Insurance

July 7, 2015

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c5a83c_871ea0c11188439a882483f5e301beb3Often times, Long-term care insurance(LTCi) and Disbility Insurance(DI) get confused with one another. Here we will clarify the distinction between the two types of policies and who they are designed for.

The main distinction between these two policies, is timing. Disability insurance is designed for individuals that are still working, they are normally under the age of 65. It will replace a portion of your income if you were unable to work. Disability claims usually consist of cancer, heart attack, stroke, accidents, etc. *The thing to look for in Disability policies is “own occupation” vs. “any occupation”.

Own Occupation typically requires that the individual be unable to perform the material and substantial duties of their particular occupation.
Any Occupation defines disability in the terms of the individuals inability to engage in any gainful occupation that their reasonably suited for based on their work experience, education, etc.

Long-term care insurance also gives you income but it’s purpose is to cover the additional costs related to a long-term care situation which is triggered when your health becomes compormised. Long-term care insurance covers an extended care situation, which may occur anytime in life. It is essentially when it is unsafe for you to be alone due to physical or cognitive impairment. Long-term care claims normally last longer than disability claims and are usually a permanent situation. The physical triggers for long-term care claims are losing the ability to perform two or more ADL’s (Acitvities of Daily Life) or being diagnosed with a cognitive disease.

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