Disability insurance replaces a portion of your income if you become disabled and are no longer able to work. That is why sometimes this type of insurance is called “paycheck insurance”. A typical group plan offered by an employer will replace up to 60% of your salary. Supplemental plans and individual policies will often cover up to 70% or 80%. (No plan will cover all of your salary for fear you will have little or no incentive to get back to work!)

Bonuses don't usually make it into the equation. Group plans will only insure your regular salary. Benefits. typically last for a set number of years (say five years) or until you reach retirement age. (Benefits typically stop around retirement age since once you retire, you would no longer be dependent on the income you generated by working, anyway.)

If you pay the premium out-of-pocket — meaning your employer doesn't cover the tab — benefits are tax free. Otherwise you are responsible to pay taxes on the benefits received. If your employment with the employer terminates, so does the group disability policy. Typically enrolling into a Group LTD plan is guaranteed with no medical underwriting requirement.

Long term care insurance assists people who cannot perform essential daily activities on their own; things like eating, dressing, and using the bathroom. This is usually due to a chronic illness or degenerative condition. Long term care can be provided in a variety of places, whether at home or at an assisted living facility, a nursing home or other setting. It consists mostly of "custodial care", or assistance with daily activities, rather than medical care that would be covered by your health plan.

These days, we're living longer than ever. And as life spans grow, more of us need long term care. In fact, it's estimated that over 60% of people 65 and over will need long term care assistance during their lives – either at home or in a facility. Long term care can get expensive. Costs range from a national average of $25 per hour for a home health aide to $88 per day in an assisted living facility and $194 per day in a nursing home. Programs like Medicare pay for little or no long term care expenses, and you must be impoverished to qualify for Medicaid coverage. Medicaid is a welfare program and it will NOT cover long term health care costs for the average American.

Health insurance and medical supplements DO NOT cover nursing home care. Without a plan, potential long term care expenses can become a significant out-of-pocket responsibility where individuals and families through their savings, assets and cash, pay most of the Long Term Care costs. That is another reason why Long term care is sometimes referred to “Asset insurance”. All Long Term Care plans are Medically Underwritten that is why it is a good idea to purchase a plan early while healthy.

Long term care insurance assists people who cannot perform essential daily activities on their own; things like eating, dressing, and using the bathroom. This is usually due to a chronic illness or degenerative condition. Long term care can be provided in a variety of places, whether at home or at an assisted living facility, a nursing home or other setting. It consists mostly of "custodial care", or assistance with daily activities, rather than medical care that would be covered by your health plan.

These days, we're living longer than ever. And as life spans grow, more of us need long term care. In fact, it's estimated that over 60% of people 65 and over will need long term care assistance during their lives – either at home or in a facility. Long term care can get expensive. Costs range from a national average of $25 per hour for a home health aide to $88 per day in an assisted living facility and $194 per day in a nursing home. Programs like Medicare pay for little or no long term care expenses, and you must be impoverished to qualify for Medicaid coverage. Medicaid is a welfare program and it will NOT cover long term health care costs for the average American.

Health insurance and medical supplements DO NOT cover nursing home care. Without a plan, potential long term care expenses can become a significant out-of-pocket responsibility where individuals and families through their savings, assets and cash, pay most of the Long Term Care costs. That is another reason why Long term care is sometimes referred to “Asset insurance”. All Long Term Care plans are Medically Underwritten that is why it is a good idea to purchase a plan early while healthy.

Now that you have a good understanding of the transition from Group Long Term Disability to Long Term Care, it's time to look at what your next steps are.

There are many factors to consider when deciding on Long Term Care plans. To help you in this process our Next Steps section assists you in figuring out what's factors are important.

Click next to get started.   Next