Frequently, people have a tendency to get confused about this subject. When people are requested how they plan to protect their property and income in case of a long term treatment situation, almost every time answer is the same; “Well I have a disability insurance policy… ”
Confusion starts with the associated with Disability Insurance where people obtain Short Term Disability and Long Term Impairment confused with Long Term Care. There exists a distinct difference between the two insurance policies and in order to have a better knowledge of the difference, we need to know what each insurance policy vehicle offers as protection.
We’re going start explaining what Disability Insurance coverage offers without going into too much details as in Long Term or Short Term Impairment: In a nut shell, Disability insurance plan provides a portion of your income for a particular period of time when you are disabled while you are employed. What this means is when you get disabled, you may receive up to 40, 60 or possibly 80 percent of your total earnings for a specific period of time. Further more, this means two things:
(1) About to catch going to receive any supplemental income for the cost of your care throughout your disability insurance; all you are going to get is the portion of your income.
(2) You can receive a portion of your income for a particular period of time. When this period is over, your income from your disability insurance will catch.
So you can actually see that the benefits of Disability Insurance are very specific and restricted. Nevertheless this simply doesn’t imply that Disability Insurance is not a valuable safety plan.
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When you learn the benefits of Long Term Care Insurance, you should be able to understand that the two protection plans take separate and important precedence in our lives.
Before we get into the benefits of Long-term Care Insurance, we need to clear out one particular misconception about this insurance plan; Long Term Care Insurance is not necessarily some insurance policy that you purchase to get care if you are older, and it is not particularly the nursing home care either. People get into Long Term Care situation in younger ages too and Long Term Care Insurance is a great protection program that provides many valuable benefits.
Among many of these benefits, of course the most important the first is to provide funds for your care when you are unable to do some of your daily activities. This is actually the main difference between this plan and the Disability Insurance; Long Term Care Insurance policy does not provide income or any portion of your income, it actually pays for the cost of your care up to certain amount which is determined within your policy. In other words, Disability Insurance provides you a portion of your income where Long Term Care Insurance actually pays for the cost of your care. You can now see the importance and the complimentary nature of the two insurance plans; while you are getting a portion of your income through your Disability Insurance – which is always less than your regular income, you will also have your own Long Term Care Insurance paying for the expense of the care that you are receiving.
Thinking about the present high cost of care, and having to pay for it with a limited revenue may become an enormous financial burden. This really is one of the most important reasons why these two insurance plans exist. It is also as important and highly recommended that you should consult an insurance professional who can coordinate and design these types of policies according to your specific personal needs for your full protection.