Long Term Disability Insurance

What if you were unable to return to work after an unforeseen illness or accident? Long-term disability coverage takes over where short-term disability plan leaves off. If you are sick or incapacitated for longer than six months, long-term disability insurance will provide the coverage for the remaining period of your disability. The plan provides you with income replacement for the period defined by its policy. Compensation could extend from a few years to the rest of your life. Amount you will receive depends on the type of plan you purchased.

Important Factors to Consider

It is critical to know the details of your coverage long before you have a problem:

1. The percentage of your salary the insurance benefit would provide, should you become disabled
2. Whether you are required to pay premiums after you become disabled
3. Whether there is any kind of cost of living adjustment if your disability continues for longer than a year or two
4. How “disability” is defined in the policy of your insurer (Some policies only pay for disability due to injuries, not unexpected illness, such as a heart attack).
5. Whether the long-term coverage takes into account other disability programs, including Social Security (If other benefits are counted, your pay from the coverage could be lower than the percentage of your salary that was agreed upon purchase of the plan).

Peace of Mind for the Unexpected

Of course, no one wants to have to collect this benefit. However, if you become disabled for longer than six months, this coverage provides your family with a safety net. It means that you can relax and focus on getting well, rather than worry about your finances. While any long-term disability insurance can be expensive, the good news is the benefits you receive are usually tax-free, provided that you pay the premiums out of pocket.