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Course: Financial Literacy > Unit 6
Lesson 4: Disability and long-term care insuranceDisability and long term care insurance
Disability insurance helps replace some of your income if you get sick or injured and can't work for a while. Long-term care insurance helps pay for care you might need if you have a long-lasting illness or disability, like help with daily activities or staying in a nursing home. Created by Sal Khan.
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Sal didnt smile at the end of this video! something bad is coming!(2 votes)
ok with ptsd being a disability do you have to have it be coming from the Army to get it or not?(0 votes)
All kinds of people suffer from PTSD, especially women who have been sexually abused.
PTSD can be part of the reason why some people apply for and receive disability payments.(4 votes)
What is the difference between long term care insurance and just simple plain health insurance? If you need to get yourself treated for an accident or something that has caused you a disability isn't this usually covered by a simple health insurance? what if you have to go to the er(emergency room)?(1 vote)- Those are several different questions. Let's take them one at a time.
1) The difference between long term care insurance and simple health insurance should be covered in the lesson. The easiest way for you to learn that is to listen once more.
2) Treatment for accidents or things that cause you disabilities are, indeed, usually covered by simple health insurance, which will pay a portion of the treatment costs after the "deductible" and "copay" portions have been met by you. But support for you while you are unable to work and must stay home getting better will not be covered by simple health insurance.
3) If you have to go to the emergency room, those costs are covered according to the contract you have with the insurance company as noted in your policy.(0 votes)
Video transcript
- Talking about insurance
is never a lot of fun, because you're talking about,
or you're thinking about things that most of us don't want to have to deal with in life. And I'm going to continue that trend by talking about two new
scenarios of insurance, and that's disability insurance, and that's long-term care insurance. And sometimes those two get confused. Disability is a situation
where, if for whatever reason, you become disabled, and you're
not able to work anymore, how are you going to support yourself, and support your family? You are going to need some form of income. And so that's what disability
insurance is all about. You pay the premium, and
if, for whatever reason, you are not able to work, because you've lost your ability to work, it can't just be I
don't feel like working. But if the insurers say,
"Okay, that's what was covered, that was one of the scenarios, you are no longer in a
position to do that job." Then that will cover your
income, up to some amount, depending on what the actual policy said. Now long-term care could be related to it, or it might not be. Above and beyond lost income, if you have some type of
an accident or disease that makes you not be
able to work anymore, you might have significant
medical expenses. You might have to, I
mean, these are situations that none of us want to see happen, but you might have a
extended stay in a hospital, which can be very, very, very expensive. Even if you are able to
maintain your income, because of some kind of
disability insurance, or have some income, it might
not be your full income, because of the disability insurance, you now have a much bigger expense, because of all these hospital expenses. And that's what that long-term
care insurance is all about. And it's not just for older people. It could be, and I keep
saying, this is a situation none of us want to be in, Where you get into an accident and you have an extended
stay in the hospital, it can cover that. So in some cases, employers will provide these types of insurances, but they're oftentimes not enough coverage to fully protect you. So if you're worried about these, and if you don't have
savings that can provide you and your family a
cushion, if one of these pretty horrible things happen to you, you might want to think
about disability insurance, and/or long-term care insurance.