Disability Income Insurance vs. Long Term Care Insurance
Aren't They The Same Thing?
In my meetings with clients I often get the following question posed to me, "I have disability insurance. Isn't that the same thing as long term care insurance?" The quick answer to that question is NO. These are two very different types of protection. If you have disability income insurance, you should also have long term care insurance. Disability income insurance replaces a portion of your lost income. To be eligible for disability insurance you need to be working and under the age of 65.
If you become disabled through an accident or illness and are no longer able to work, your disability income insurance will typically pay you anywhere from 50% to 75% of your income. Your disability needs to last longer than 90 days for the disability insurance to take effect. The intent is to replace the income you can no longer earn due to your condition. It helps to pay the mortgage, utilities and provide food. Disability income insurance stops when you turn 65. This is because social security takes over at that point.
If you become disabled and cannot work for at least 90 days, the chances are great that you need some sort of care or assistance. The care and assistance you need creates a new expense in the form of long term care. Disability income insurance replaces the lost income which covers your current bills, but leaves nothing to cover the NEW cost you have of receiving care. This is where long term care insurance complements your disability income insurance.
Long Term Care Insurance Complements Your Disability Insurance
Long term care insurance will pay for the new expense you have in receiving care and assistance. It will enable you to receive the type of care you need in the setting of your choice. Most people think of long term care insurance as nursing home insurance. Actually, it can help to keep you OUT of a nursing home by providing the means to pay for care at home or in an assisted care facility. It is your choice where you receive your care. You are in control and will be able to maintain your independence.
If you have disability income insurance, you realize that something could happen to you at any time that could cause you to become disabled. If this is true, then you should not hesitate in looking at long term care insurance. Your current good health is what enables you to buy long term care insurance. Many times clients refer friends and family to me that have waited too long to receive this protection. Our health is only as good as it is right at this moment. It can change in the blink of an eye. Ask anyone who has had a stroke or car accident if the day before the event they knew it was going to happen. Most of them never thought it would happen to them. It only happens to other people right?
I recommend if you haven't visited with a long term care specialist to take the time to meet with one today. See if the coverage is appropriate for you. Determine if premiums fit into your budget. If so, start the health approval process and lock in your health.
Educational Seminars Available in September and October
Come Join Us and Learn About Your Options
AM Warner Insurance is excited to announce a number of free educational seminars coming in the next few months. We encourage you to attend one of them to gain more information on a variety of topics. These are NOT sales presentations. They are intended for you to gain additional information on topics of interest to you. If there are additional topics you would like to see us sponsor, please let us know and we'll add it to our seminar schedule.
You may contact us for more information and locations at 502-742-4979 or amwarner@AMWarnerInsurance.com. Please contact us early to reserve your seat. All seminars will be held in the Louisville area.
Tuesday, September 21, 6:45 pm
AM Warner Insurance is partnering with Owen Funeral Home to tell you everything you wanted to know, but were afraid to ask about:
- Final Expense Planning
- Long Term Care Insurance
- Wills and Trusts
Don't avoid the inevitable. This is an educational presentation on the topics you don't WANT to think about but wisdom says should be investigated.
Sunday, October 10, 2:00 pm
AM Warner Insurance is partnering with the Metropolitan Community Church to provide an educational seminar on long term care insurance. AM Warner Insurance provides products from GE Capital Assurance which offer a couple's discount to domestic partners when both are eligible to apply. Find out the benefits of long term care insurance if you are in a committed relationship with a person of the same sex.
Tuesday, October 12, 6:30 pm
AM Warner Insurance is partnering with Right at Home to provide an educational seminar on the resources available to enable you to stay at home when you need care and how long term care insurance can provide the means for receiving care in your home. Right at Home is an organization offering in-home care and assistance to adults to help them continue living independently.