Long-Term Care vs. Disability Insurance

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Long-Term Care vs. Disability Insurance

What is Long-Term Care Insurance?

Long-term care insurance covers care generally not covered by health insurance, Medicare, or Medicaid. It’s for individuals who can’t perform basic activities of daily living (ADLs) like dressing, bathing, or eating. Policies can cover care in various settings, such as your home, a nursing home, or an assisted living facility.

What is Disability Insurance?

Disability insurance provides income protection if you’re unable to work due to a disability. This can include injuries or illnesses that don’t necessarily limit your ADLs but do prevent you from performing your job duties. It’s designed to replace a portion of your income during the disability period.


  1. A 65-year-old retiree needs assistance with daily activities due to arthritis: Long-term care insurance would cover the costs of in-home care or a nursing facility.
  2. A 40-year-old teacher has a car accident and can’t work for six months: Disability insurance would provide a portion of the teacher’s income during the recovery period.
What Is The Difference Between Long-Term Care And Disability Insurance

Key Differences

FeatureLong-Term Care InsuranceDisability Insurance
Coverage FocusADLs assistance, nursing careIncome replacement
Benefit TriggerInability to perform ADLsInability to work due to disability
DurationCan be years or lifetimeUsually until retirement or recovery
Benefit TypeCare services expensesCash (percentage of income)


Choosing between long-term care insurance and disability insurance depends on your specific needs. Long-term care insurance is more about covering costs for daily living assistance, while disability insurance is about income replacement. Assess your personal risk and consult a financial advisor to make an informed decision. Contact us today for a free quote.

Long-Term Care Vs. Disability Insurance

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Frequently Asked Questions

What is the most common long-term disability?

The most common long-term disabilities often involve musculoskeletal disorders like back pain, arthritis, and neck issues. Mental health conditions like depression and anxiety are also prevalent. Additionally, chronic illnesses such as heart disease and cancer are leading causes of long-term disability. The likelihood of specific disabilities can vary by age and occupation.

At what age should you drop disability insurance?

There’s no universal age to drop disability insurance, but many people consider doing so as they approach retirement age and have sufficient savings or other income streams. Consult a financial advisor to assess your personal situation, including assets, liabilities, and potential risks, before discontinuing coverage.

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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