Do you think it is best to have additional disability insurance or long term care insurance?
My husband and I are discussing two different policies in the event, God forbid, something goes wrong with either us greatly affecting our health.
Background information: my husband is the only person working at this time, and we can afford our expenses, including being able to save. My husband, through his job, currently has long term disability insurance that would provide us with a percentage of his pay. We can live on the percentage, though it would be very tight, we would have to cut out extras like travel, and it does not include big spends like buying a new car if it came up, or a major house repair, but we do have savings for that. We are in our mid 40’s.
The two options:
His company is offering additional disability insurance, which at any time between age 60–70 can be converted to a long term care policy. The coverage would be for just him. It is portable from his company. If he changes jobs he can take it with him.
Independently I looked into a long term care policy, and for about the same amount of money we can get a policy covering both of us.
The big difference between the two is the extra disability gives you more cash in your hand to use as you wish, while the long term care would be spent directly for daily needs while disabled.
What are your opinions, and please state your reasoning.