Disability Insurance

Disability - Sources of Income¹:

• Savings - If you save 10 percent annually, one year of disability may wipe out 10 years of savings.
• Social Security - Almost 70 percent of applicants are rejected.²
• Sell investments - Will you get the true value?
• Loan - Without an income, who will lend you money?
• Family, friends and charity - Do you want to depend on them?

What are the sources of income when someone becomes disabled and can no longer earn a living? Note the options shown above. When disability occurs, most other options, except insured income replacement, may be unsatisfactory or quickly exhausted.

Disability is bad enough -- disability without income is even worse. Disability income replacement insurance is a long-term solution to a long-term disability.

1 Note: This information provides only a brief explanation of coverage. It is not a contract. Modifications of types of coverage may be applicable in some states. Coverage may not be available in all states. Exclusions and limitations may apply. A complete statement of any coverage, including applicable terms will only be found in the statement of coverage found in an individual policy. Renewal premiums may increase periodically depending on your location. Policies may or may not be renewable. Details on available coverage and cost may be obtained from your licensed insurance agent. Combinations of coverage may be subject to underwriting guidelines, benefit periods chosen and occupational classes.

2 Source: Social Security Administration

Long-Term Care Insurance

Long-term care refers to the medical and/or personal care services required by a person with a chronic disability or illness. Seven in 10 Americans age 65 or older will need some type of long-term care, according to the U.S. Department of Health and Human Services.

While a nursing home is often what comes to mind when you think of long-term care, most services are provided at home, in adult day health care facilities or in assisted living facilities. According to the “2017 Genworth Cost of Care Survey,” the median annual costs for these services are:

Homemaker services: $47,934

Home health aide: $49,192

Adult day health care: $18,200

Assisted living facility: $45,000

Nursing home semi-private room: $85,775

Nursing home private room: $97,455

Who pays the cost of long-term care? The patient or family pays for nursing home care costs not paid by Medicare or Medicaid. Medicare offers limited coverage for up to 100 days in a skilled nursing facility per benefit period, and benefits may not be available for home care. For those with low income and limited resources, Medicaid may pay for some long-term care services at home or at another facility. To qualify for Medicaid, the patient must be impoverished under the state's definition. In most states, the patient must not have income greater than the cost of the nursing home facility. Other states have "income caps" to limit eligibility for Medicaid.

The need. Some people may require daily medical attention, while others may simply need help with the basic activities of daily living (ADL) such as bathing, dressing, taking medication, eating, using the toilet, getting in or out of bed, or walking. A typical nursing home stay commonly falls into two categories: short-term stays (one to three months), which involve skilled nursing care and typically follow a hospital confinement; and lengthy stays that average 2.5 years and include mostly maintenance and custodial care.