There is a misconception among people that just because they have a disability insurance (either from their employers or private) they also have their Long Term Care Insurance covered. Nothing can be further than the truth...!

You have to realize that, in reality, they are two different products with two separate purposes. In order to understand the purpose of the two insurance policies, we need to make the distinction as follows:

1. Disability Insurance provides a portion of your income when you are disabled
2. Long Term Care Insurance provides funds (up to a limit designed within your policy)  for your care.

Even though the purpose of the two policies are quite different, people still get the wrong ideas, again. Their notion is, if they continue to get funds when they are unable to work, they should be able to pay for the care they need in case of a long term care situation. However, the problems start as follows;

1. Disability insurance provides funds up to 40, 60 or 80 percent of your income.
2. If your employer is paying for your disability insurance, the funds that you receive from your insurance will further be reduced by taxes.
3. Most health insurance policies do not cover long term care. If you consider the exponentially rising health care cost, it will be quite unimaginable to get stuck with the bills from long term care (somebody coming to your house to help you with your daily activities, or you going to some type of a care-facility, etc)
4. Most Long Term Care Insurance plans have State Partnership Programs that provide protection to some portion of of your wealth and/or your income.
5. Most importantly, if you have a Disability Insurance, you should be able to pay for your Long Term Care Insurance premiums while you are in a long term care situation.

To summarize the matter, I also included a video-snippet from one of my TV Shows (below):