Quite often, people have a tendency to get uncertain of this subject. When people are requested how they plan to protect their resources and income in case of a long term care situation, almost every time answer may be the same; “Well I have a disability insurance coverage… ”
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 plans and in order to have a better knowledge of the difference, we need to know what each insurance coverage vehicle offers as protection.
We will start explaining what Disability Insurance offers without going into too much fine detail as in Long Term or Short Term Disability: In a nut shell, Disability insurance coverage provides a portion of your income for a specific period of time when you are disabled while you are employed. What this means is when you get disabled, you might receive up to 40, 60 or maybe 80 percent of your total revenue for a specific period of time. Further more, this too means two things:
(1) About to catch going to receive any supplemental income for the cost of your care through 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 specific period of time. When this period is over, your earnings from your disability insurance will seize.
So you can actually see that the benefits of Impairment Insurance are very specific and limited. Nevertheless this simply doesn’t mean that Disability Insurance is not a valuable defense plan. When you learn the benefits of Long-term Care Insurance, you should be able to realize that the two protection plans take separate and important precedence in our life.
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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 Treatment Insurance is not necessarily some insurance policy that you purchase to get care when you are older, and it is not particularly a nursing home care either. People get into Long Term Care situation in younger ages too and Long Term Care Insurance is a great protection plan that provides many valuable benefits.
Amongst many of these benefits, of course the most important you are 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 price of your care up to certain amount that is determined within your policy. In other words, Disability Insurance provides you a portion of your income where Long Term Care Insurance really pays for the cost of your care. Now you can 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 policy – which is always less than your regular income, you will also have your Long Term Care Insurance paying for the expense of the care that you are receiving.
Taking into consideration the present high cost of care, and having to pay for it with a limited income 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 plus 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.