Abromson & Carey, Attorneys at Law
You Take Care of Your Health, We’ll Take Care of Your Case
27+ Years Helping the Disabled
Phone: 888-512-7031

What is best: long-term disability or long-term care?-Part II

The previous post on this blog provided an overview of long-term disability insurance and long-term care insurance. While many people in New Jersey may benefit if they have both types of coverage, the fact remains that affording both may be difficult. Therefore, a person planning to buy a long-term insurance policy should consider certain factors before making the decision about which policy to buy.

First, a buyer should look at the number of years that are left before retirement, which is at age 65. This factor is important because payments from a long-term disability insurance policy stop at the age of 65. Therefore, if the person does not have 10 to 15 years left before retirement, it may not be a smart purchase.

Next, the buyer should be fully aware of that person's own health condition. That is because many policies, both for long-term disability and for long-term care, exclude pre-existing conditions. Therefore, it is important to disclose every detail about the person's health so that disputes can be avoided later.

Another important point to consider is whether the person can afford a private long-term insurance policy for disability or for care. Typically, an average long-term care policy costs $2,300 a year; however, the cost can vary, depending on age, health, length of policy and other factors. The cost of a long-term disability insurance policy can also vary, depending on the same factors. However, as a benchmark, a buyer can expect to pay 1 to 3 percent of the person's annual salary as a yearly premium.

Finally, the buyer should consider the various benefits and riders offered by the insurance companies when the person buys either a long-term disability insurance policy or a long-term care insurance policy. Some examples of such benefits are cost-of-living adjustments and long-term care riders attached to life insurance policies. A buyer should select the policy that meets the person's particular requirements best.

However, as mentioned in the earlier blog post, buying long-term disability or long-term care insurance does not guarantee smooth claim processing. In fact, many people who have purchased such polices have their claims denied, often without adequate reasons. Therefore, it may be a wise decision for those people to file their claim with the help of an attorney.

Source: Forbes.com, "Long-Term Disability Insurance vs. Long-Term Care Insurance," Robert DiGiacomo, Aug. 12, 2015

No Comments

Leave a comment
Comment Information
contextual email us email us for a response

Contact form

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

office location

Abromson & Carey, Attorneys at Law
60 Park Place
Suite 509
Newark, NJ 07102

Toll Free: 888-512-7031
Phone: 973-623-5593
Fax: 973-624-4804
Map & Directions