Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Is Disability Insurance Long Term Care Insurance? No, these are two different types of insurance policies with different triggers for payout. While both create a pot of money for the insured to use, the requirements that need to be met to trigger these pools of money are different. For long term care insurance the trigger is usually the inability to do 2 or more of the average daily life activities. Disability's trigger is usually the inability to do the material duties of your job.
Disability Insurance is not the same as Long Term Care Insurance. Disability Insurance pays you a portion of your income if you are unable to work due to a disabling injury or illness. The benefit is a percent of your salary.
Long Term Care Insurance pays you a cash benefit to use for your extended care needs if you meet the qualifying triggers, which include the inability to do at least two Activities of Daily Living (ADL's). The dollar amount of the benefit is chosen at the time you purchase the policy.
No, Disability Insurance is not the same as Long Term Care Insurance. Disability Insurance provides a benefit if you are unable to work at your job due to illness or injury. Long Term Care Insurance provides a benefit if you are unable to perform some ADL's for an extended period of time.
With LTCI, it does not matter if you have a job or not. In fact, most people are not employed when they collect Long Term Care benefits, because it takes significant impairment to trigger the payments.
On the other hand, you cannot get DI unless you are employed and receive a paycheck. If you have a same occupation feature on your Disability Insurance policy, it will pay you a percent of your income even if you could work at a lower paying job.
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Long Term Care Insurance pays you a cash benefit to use for your extended care needs if you meet the qualifying triggers, which include the inability to do at least two Activities of Daily Living (ADL's). The dollar amount of the benefit is chosen at the time you purchase the policy.
With LTCI, it does not matter if you have a job or not. In fact, most people are not employed when they collect Long Term Care benefits, because it takes significant impairment to trigger the payments.
On the other hand, you cannot get DI unless you are employed and receive a paycheck. If you have a same occupation feature on your Disability Insurance policy, it will pay you a percent of your income even if you could work at a lower paying job.