1. Unit 2, Lesson 6 Overview of Disability and Long-Term Care Insurance
AOF Insurance
Unit 2, Lesson 6 Overview of Disability and Long-Term Care Insurance
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2. Disability and health insurance go well together
Health insurance and disability insurance go well together.
Health insurance pays for medical expenses, not lost wages.
Disability insurance covers lost wages, not medical expenses, due to any of the following:
Medical Expenses
Lost Wages
Injury
Physical Illness
Mental Illness
Financial impact of major illness or injury

3. Serious disability is likelier than many think
42-year-olds are four times more likely to become disabled than die during their working years.
The odds of someone 35 or older being disabled for five years or more are 14%.

4. Extended disability can cause great financial harm
If you are disabled with no insurance, you might not be able to pay:
Mortgage payments or rent
Auto payments
Food and fuel
Medical expenses not covered by insurance
Should banks be prevented from foreclosing on homes of people facing disabilities? Why or why not?

5. Long-term care insurance provides important protection
Long-term care pays for assistance when you can’t complete activities of daily living (ADLs).
ADLs are: dressing, bathing, eating, toileting, continence, transferring (getting in and out of a bed or chair), and walking.
Without such coverage, costs for assisted living over long periods of time can be very expensive.
Type of Assistance
Average Monthly Cost
Semi-private room in nursing home
$5,610
Private room in nursing home
$6,270
Home health nurse 3x/week
$1,044
Daily care in adult care center
$1,770
Have you ever been so sick you couldn’t complete an ADL? Who took care of you?

6. Long-term care is gaining in popularity as America ages
Long-term care insurance is being sold more often, as
Baby boomers are aging.
Medical costs are rising.
People are living longer, increasing chances of needing long-term care.
Source: U.S. Census Bureau 2004a, 2004b, 2004c
Can you think of other reasons its popularity is growing?

7. Many of us will need long-term care at some point
70% of people older than age 65 will require long- term care.
Women, on average, require 3.7 years of long-term care.
Men, on average, require 2.2 years of long-term care.
Why do you think women are likelier to require long-term care than men?

8. Disability and long-term care insurance protect assets
Often the elderly have limited income. Disability and long-term care insurance help seniors avoid:
Using up their retirement savings
Putting financial pressure on their children