REVIEW: Long-Term Disability Insurance Vs. Long-Term Care Insurance

All right, who here loves insurance? You two insurance agents in the back can put your hands down. I’m talking to the rest of us. Most of us view it as a “necessary evil.” This article examines just how “necessary” it is to obtain disability insurance and long term care insurance.

While the author doesn’t really make the case for the “evil” side of the equation (Hint: It has a little something to do with enriching an insurance company by buying a product that you may never use), he makes a fair case for the “necessary” side. The article provides a quick explanation of what the two types of policies actually cover, and it outlines five factors to keep in mind if you are considering either or both of these types of coverage.

Frankly, you should give careful consideration to disability insurance. We don’t sell insurance products, so we have no commission to earn by telling you that. It’s just that the loss of your paycheck due to a disability event not only crimps your ability to pay the current bills but also has the potential to derail your retirement savings plan, all at a time when you and your family are already stressed-out from dealing with the accident or the injury.

With nursing home costs exceeding $100K/year in many parts of the country, an extended stay can deplete a nest egg at an alarming rate. The LTC industry has been through a bit of a perfect storm in recent years. With policies evolving, it’s becoming less and less common for us to recommend that our clients obtain LTC insurance. But that doesn’t mean you shouldn’t analyze the need.

But don’t go out and buy a policy without discussing it with your financial advisor first!


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