Early in my career, I met with someone who had a disability insurance policy cancelled due to nonpayment. This cancellation (or lapse) occurred due to no fault of the policy owner. To make a long story somewhat short, this guy – a professional musician with a symphony orchestra — moved to a new home and had given the insurance company the address change with plenty of notice. His premium payment was set up on a quarterly direct billing mode.
In my last post I explained the basic differences between long-term care (LTC) insurance and disability insurance. For most people, LTC is associated with elderly people in nursing home care. We tend to think of adult children helping their elderly disabled parents find appropriate care. These are typical scenarios since many elderly people need a high level of care that is difficult for family members to provide. *[In case you are wondering if these policies really pay claims,
I find that many people do not understand the key differences between disability insurance and long-term care (LTC) insurance. The most common misconception is that long-term care insurance is strictly for seniors and disability insurance is for everyone else. While there is some truth to that generalization, there are plenty of exceptions — where one product is a better solution than the other irrespective of age. Approximately 40% of those receiving long-term care are between the ages of 18-65 —
