Long-Term Care or Long-Term Disability?

What is the difference between long-term care and long-term disability insurance?

Long-term care insurance
Since people are living longer, employees are asking more about long-term care (LTC) insurance and want to know if it is part of their employer provided group benefits insurance plan. While most realize LTC will cover their end of life nursing home and medical care when they grow older they may not realize LTC insurance covers ‘anyone that requires extended care’ not just the elderly. Meaning LTC insurance ‘goes beyond medical care’ and will also cover ‘living assistance’ for family members with disabilities and/or those who may have a long-term ‘severe illness’.

Herein lies the confusion.

woman athlete in a wheelchair

Long-term disability insurance
Long-term disability (LTD) insurance is different from long-term care insurance because “LTD insurance can be used for living expenses, not just covering care.” It is an ‘income replacement’ when an employee is off the job due to a disability and unable to earn the income. Usually offered following short-term disability, this insurance covers a percentage of income until the employee can return to work. Unlike LTC, LTD usually ends if an employee changes jobs.

Even though they sound similar they are two very different types of insurance coverage.

Would you like to learn more about disability insurance? Please call our benefits brokers at (360) 419-9999 or in Seattle at (206) 910-4630.

Disclaimer: The above content is intended only as general information. Always consult the advice of the appropriate professional service provider such as a benefits broker before making any health insurance and employee benefit decisions.