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Long Term Care Insurance vs. Long Term Disability Insurance

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Long Term Care Insurance vs. Long Term Disability Insurance

Long term care (LTC) and Long term disability (LTD) insurances are all about protecting yourself and your loved ones against worst-case scenarios. Is it time to start thinking about LTC or LTD insurance? What’s the difference between these two? While LTD and LTC may seem similar, they are purchased for two very different situations.

LTD is about replacing a portion of lost income if you are temporarily ill or disabled and unable to work for several weeks or months [1]. It will cover regular living expenses like your mortgage or rent, groceries, car payments, etc.

As a federal employee, you have access to disability retirement through the Federal Employee Retirement System (FERS) and Foreign Service Retirement and Disability System (FSRDS). These have several eligibility requirements including having to have completed at least 18 months of creditable Federal civilian or foreign service and having a disability that is expected to last one year[2].

Therefore, if you are a newly hired employee or you just want extra protection, you may want to consider acquiring disability coverage through a private supplemental disability policy. A private policy may offer flexible benefits and benefit periods. In addition, some may provide benefits even after you leave federal service.

In contrast, LTC covers nursing home or home health aide costs during retirement years[3] or at any age when you cannot independently perform routine daily-living activities such as feeding and dressing yourself[1].

Federal Long Term Care Insurance Program (FLTCIP) is available and great LTC option for federal employees, however you may want to investigate private plans as well, just to cover all your options.

How AFSPA Can Help

We offer two professional and experienced LTC consultants, Long-Term Care Consultants, Inc. and Signature Financial Partners, LLC, at no cost to our members. These consulting services can help decide if you should enroll in a private LTC plan based on your caregiving needs and budget. Click here to learn more.

In addition, we offer three disability insurance coverage options exclusively designed for AFSPA members. Our disability plans cover you anywhere in the world at up to 60% of your annual salary, up to $5,000 or $7,500 a month – depending on the plan you choose. They provide coverage against short-term disability and long-term disability. If insured in an AFSPA plan and you leave federal service you may reapply for our disability coverage under your new job as long as you remain a member of AFSPA.  To learn more about AFSPA’s Disability Plan options, click here or visit afspa.org/disability.


[1] https://www.fickewirth.com/the-loop-detail.php?LTD-vs.-LTC-Insurance-169

[2] https://www.opm.gov/retirement-services/fers-information/types-of-retirement/#url=Disability

[3] https://www.meetbreeze.com/blog/long-term-care-vs-long-term-disability/

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