New Jersey residents can become stricken with a long-term disability at any time. However, the chances of being affected by such disabling conditions become greater as people age. It is for that reason that people often choose to buy private insurance policies in order to cover long-term-disabilities and the resulting long-term care that they may need. However, many people are confused about which type of long-term insurance best suits their needs.
First, a person who is planning to buy long-term disability or long-term care insurance should understand that the cost of both types of coverage increases as the buyer ages. Therefore, buyers should ideally make the decision to buy long-term disability or long-term care insurance by the age of 50.
Typically, a long-term disability insurance policy pays 60 percent of a disabled worker’s wages until the age of 65, and can be a supplement to Social Security disability benefits. A long-term care insurance policy, on the other hand, starts to pay any time when the buyer is unable to perform a minimum of two of six functions of daily living, such as eating or dressing.
While many people may recommend having both types of long-term coverage, a buyer may not be able to afford both. Therefore, it is important for such buyers to understand both types of insurance coverage in detail in order to make the decision about which type is best suited for their requirements.
In order to make that decision, certain factors play an important role. Those factors pertain to the number of years left before retirement, the buyer’s current health condition, the buyer’s ability to afford long-term insurance coverage and certain details that are related to the type of policy and type of coverage. Those factors will be discussed in the next blog post in order to help a buyer make an informed decision.
Having said that, buyers should remember that buying long-term disability insurance coverage or long-term care insurance coverage does not guarantee that their claims will be processed without scrutiny. In fact, despite the coverage, many people face challenges when they claim benefits. Therefore, it may be a smart decision to buy such coverage and file claims with the help of an experienced attorney.
Source: Forbes.com, “Long-Term Disability Insurance vs. Long-Term Care Insurance,” Robert DiGiacomo, Aug. 12, 2015