Final answer:
Long-term disability insurance often lasts until a person reaches traditional retirement age, which is age 65. However, the age for full retirement benefits is increasing from 65 to 67. Disability benefits and Social Security play a critical role in providing financial stability during old age and times of health issues.
Step-by-step explanation:
Long-term disability insurance is designed to provide income to individuals who are unable to work due to a qualifying disability. This type of coverage can last for an extended period, often until the individual reaches retirement age, which is traditionally considered to be age 65. However, it is important to note that changes to Social Security legislation have been made, with the full retirement age incrementally increasing from 65 to 67 for workers born after 1959. The combination of retirees' susceptibility to serious illnesses such as cancer, heart disease, and cognitive impairments like Alzheimer’s disease, as well as the increasing cost of health care and long-term care, underscores the importance of having financial protection during old age.
Furthermore, Social Security provides disability benefits to workers who prove their incapacity to work for at least twelve months. Once qualified, these disability benefits help safeguard individuals from financial distress during times of reduced income due to health issues. It is commonly understood that old age starts in the mid-60s, which is also around the time many people retire and seek to enjoy their hobbies, social activities, and family time, though this can also be a period of increased health issues and financial vulnerability where Social Security benefits play a crucial role.