Disability insurance and Long Term Care Insurance are similar products.
Disability insurance is intended to protect you during your working years if you are too sick or injured to work. The benefits are will pay you a monthly sum so you can pay your expenses. Disability insurance policies also have a CAT catastrophic rider that will pay additional benefits if you are not able to perform activities of daily living. Most disability policies expire at age 65.
Long Term Care Insurance pays you a daily benefit if you are unable to perform at least 2 activities of daily living such as eating, dressing, transferring, etc… or a cognitive impairment.
Long term care insurance protects you in your retirement years so you would not need to deplete your life savings to pay for care.
As a rule of thumb, protect your income with a disability policy while you are still dependent on your paycheck. As you transition into retirement and have accumulated assets, purchase your long term care insurance to protect your accumulated assets. Clients typically have crossover of policies in their late 50s and early 60s.
For more information about disability insurance and long term care insurance, contact Set for Life Insurance today!