Most people confuse long-term care insurance and disability insurance. The former protects your asset while you receive any form of long term care due to old age, injuries or illness. It helps pay for nursing homes, assisted living facilities, adult day care and other long term care facilities. Disability insurance on the other hand, replaces your income if you become disabled due to illness or accident. This policy permits you to pay living expenses during your recovery, and avoid financial woes if you’re forced to spend down your savings or sell your home just to cover your expenses.