Long-Term Care vs. Long-Term Disability Insurance

Long-Term Care vs. Long-Term Disability Insurance

When it comes to long-term care insurance options, there are a lot of costs and considerations to weigh while you’re making your decision. At Care Financial, we understand. We’re a family owned business, so we are tuned in to how important these choices are, not only for you, but also for the ones you love and care about. We help families every day as they decide between the many insurance options, and we can help you, too. 


For many, care insurance and disability insurance are the first things they think about when it comes to their long-term insurance options. But, frankly, understanding the difference between the two can be a bit confusing. Let’s break down the benefits of long-term care vs. long-term disability.



According to the AARP, by the time you reach 65, there is a 50 percent chance that you will one day need to receive long-term care. And when it comes to paying for things like nursing homes, assisted living or in-home care options, most of the time Medicaid isn’t an option. This is where long-term care insurance can help. If you get to a point where you are unable to perform Activities of Daily Living (ADLs) without requiring assistance, then your long-term care insurance will be able to provide for these needs. We recommend beginning your coverage for this form of insurance in your 50s when you are younger and healthier, rather than later when costs may rise because of your age or pre-existing conditions. 


*NOTE: ADLs are eating, bathing, dressing, transferring, toileting, walking and moving around. 



If you’re younger in your career or are the primary caretaker of your family, then it would be beneficial to consider purchasing long-term disability insurance. If an unfortunate event occurs and you find yourself permanently disabled, then this form of insurance will cover portions of your paycheck to make it possible for you to still live out your day-to-day life even though you may no longer be physically able to work. We recommend this policy if you have more than 10 years until you plan on retiring, especially so if you are the main breadwinner in your home. Though you may feel like becoming disabled is a “it could never happen to me” situation, you would be shocked to realize that one in four 20-year-olds will experience disability for at least 90 days before they turn 67. It’s always best to be prepared for whatever life may throw at you! 


Now that you know the difference between these two policies, it’s time to determine which one is right for you. Generally speaking, if you are younger and in good health, we would recommend the long-term disability insurance and, if you are nearing retirement, we would recommend considering long-term care insurance. If you need any additional assistance determining between these plans or if you’d like to begin receiving coverage, contact Care Financial to set up an appointment today. We’re a family—we understand how important it is to have plans in place to keep you and your loved ones financially and physically secure.

Care Financial is a privately owned and operated business providing families, individuals and businesses with comprehensive wealth management strategies. Contact us online at www.carefinancialonline.com or call us at 251-633-7122.