A Quick Comparison: Long-term Care Insurance, Long-term Disability Insurance & Critical Care Insurance
Let’s say you got sick and your regular health insurance can’t cover all your expenses, then what should you do? Below are three good options along with some pointers and explanations. Just in case if any of these types of supplemental policies have had positive (or negative) effects for you and your loved ones, we;d love to hear your story. Snapshot: Long-term Disability Insurance (LTDI) is for individuals who are working and younger than 65. Some financial planners propose that LTDI is your best bet because it will protect your income if you are unable to work for a period of time. LTDI is also sometimes referred to as income protection insurance.
With this type of policy, you will be unable to do your normal occupational duties in your work environment. These type of policies are made for people who are actively working;although those in risky jobs may find that they are undesirable to insurance companies. Once a covered disability happens, then a specified monthly benefit is paid to you for a finite period of time (typically no more than two years).
Here’s a snapshot: Long-term Care Insurance (LTCI) should be purchased in your fifties or once retirement is already possible it;ll pay out a monthly benefit for the type of care your policy allows. LTCI is geared toward the senior market. There are actually three types of policies: each of which is based on where benefits will be paid: either in a facility, at home or both. This type of insurance stems from the idea that as you age you may need assistance with anything from the activities of daily living (e.g., dressing or bathing) to skilled nursing care;and that in-home caregivers and care facilities are not affordable for many of us. Furthermore, many worry about losing their personal financial resources, resulting in an inability to leave an inheritance for their loved ones, or even their own means of supporting themselves.
For more information on when to buy LTCI, check out Is Long-term Care Insurance Worth It? Again, here is another snapshot: Critical care insurance pays a single huge amount and then terminates, however your particular life-threatening condition must be must be enumerated in your policy. With critical care insurance, you are paid a lump sum after you have been diagnosed with a critical illness. The idea is that auxiliary expenses tend to pile up just when the diagnosis occurs even if a person is insured in adult day care.
With the help of a critical insurance plan, the beneficiary can decide where his/her benefits will do the most good, whether it goes toward skilled nursing in home health care, or lost wages for family caregivers, or other expenses of daily living that are difficult to meet when one is financially disabled. Because the policy only pays you once, it has some advantages and disadvantages;while you are responsible for managing the funds sufficiently, a large payment can ensure that debt isn;t allowed to accrue.
Posted in Healthcare Professionals, Healthcare Services
July 6th, 2009 at 8:23 pm
7/6/09
Re: A Quick Comparison: Long-term Care Insurance, Long-term Disability Insurance & Critical Care Insurance
Unlike reimbursement type plans, the Cash Benefit type of Long-Term Care insurance pays a predetermined benefit every month that a person is disabled and eligible for benefits. Since many conditions that result in LTCi eligibility would also result in eligibility for Diasbility Income benefits, Cash Benefit LTCi plans may satisfy as both long-term care and long-term disability protection in many cases if designed properly. Three obvious advantages of LTCi Cash Benefit Plans are; you can keep LTCi plans for life, you can get spousal discounts, and you don’y limit your maximum benefits by your documented income.