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Long-Term Care & Disability Income


Clients spend their lifetimes working to save and ensure a secure and comfortable future. To provide this financial security they participate in qualified pension plans and nonqualified deferred compensation programs as well as purchase life and disability insurance. However none of these can provide protection against the cost of needing long-term care. Long-term care refers to services that individuals suffering from a chronic illness, disabling condition, or cognitive impairment must rely on. The combination of longer lives, family demographics, increasing cost of long-term care, and unexpected lifetime events heightened the need to protect one’s financial security from the cost of receiving this care.


While the cost of long-term care will deplete ones retirement savings another threat is the inability to build that savings. An individual is more likely to become disabled than die prematurely and being out of the workforce, even for a short period of time, can be devastating financially. Group Disability insurance plans only insure a portion of base income (typically 60%) and will not cover deferred compensation plans or bonuses. In addition the benefit normally has an upper limit and is taxed as ordinary income when premiums are paid by an employer. Supplemental individual disability income insurance can help maximize protection for earning income.