What is the difference between long term care insurance and disability insurance?
Long term care insurance (LTCi) and disability insurance (DI) both help you protect your assets, but they serve different purposes.
Disability insurance replaces a portion of your income lost due to an inability to perform your job. The qualifying disability may be job or task specific (unable to perform your particular job) or general (unable to perform any job).
Long term care insurance pays for a portion or all of the costs of caregiving needed due to physical or cognitive disability. LTCI will reimburse costs for care received at home or at assisted living or skilled nursing facilities. Policies may have a provision that a stipulated amount will be paid for any day that qualified care is required (Indemnity) or for any month during which qualified care is received (Cash).