Disability insurance
Offered by most employers, disability insurance replaces some of the income lost
when an individual is unable to work due to an illness or disability. While coverage
does not specifically cover long term care or health expenses, you can use payments
as you see fit.
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Advantages |
Disadvantages
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Replaces a predefined percentage of income while you are unable to work.
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Employer-sponsored coverage is generally available only while you’re employed by
the company up to age 65, not after you’ve retired.
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Individual may use funds for any purpose, including long term care costs.
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Because it replaces only a portion of your salary and may be subject to time limits,
it is unlikely to cover all the long term costs one might incur while away from
work. |