Unexpected events like a disability or the need to use a long term care facility can have a damaging effect on your finances. A disability can prevent you from working, and frequently employer sponsored disability insurance doesn’t take effect right away. Disability insurance ensures that you have an income, even when you are unable to work.
Long and/or short-term care insurance is important if you ever need to use a long term care facility. Many people assume that Medicare will pay for a long-term care facility, but often it does not. Long and/or short-term care insurance can protect your assets if you need to move to such a facility.