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Disability 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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  • starky seed style avatar for user K.B.B
    Sal didnt smile at the end of this video! something bad is coming!
    (5 votes)
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  • orange juice squid orange style avatar for user Sammy Apsel
    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)
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    • aqualine tree style avatar for user David Alexander
      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)
  • aqualine ultimate style avatar for user th392154
    ok with ptsd being a disability do you have to have it be coming from the Army to get it or not?
    (0 votes)
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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.