Long Term Disability (LTD) or Long-Term Care (LTC)?

Updated: Sep 15, 2020

Disability Insurance Disability Insurance is intended to protect you during your working years if you are too sick or injured to work. The benefits will pay you a monthly sum, so you can pay your expenses. Physician disability insurance policies also have a catastrophic disability rider that will pay additional benefits if you are not able to perform activities of daily living. Most disability policies expire at age 65.

Long-Term Care Insurance Long-Term Care Insurance pays you a monthly benefit if you are unable to perform at least two activities of daily living such as eating, dressing, bathing, toileting, transferring, or maintaining continence… or if you have a cognitive impairment like Alzheimer’s or Parkinson’s.

Long-term care insurance protects you in your retirement years, so you may not need to deplete your life savings to pay for care.

As a rule of thumb, protect your income with a physician disability insurance policy while you are still dependent on your paycheck. As you transition into retirement and have accumulated assets, purchase your long term care insurance to protect your accumulated assets. Clients typically have crossover of policies in their 50s and early 60s.

If you still have questions between Physician Disability Insurance and Long-Term Care Insurance, contact us.  We’d be happy to answer any questions you may have.