Long Term Disability Insurance


A man earns his livelihood through satisfactory employment. But if, for some reason, a man cannot work anymore, will he be able to make use of his assets to cover his living costs? For that to happen, your assets must be insured or protected. If your assets are protected in the case of the emergency of disability, you’ll still be able to have a content lifestyle for a prolonged period. 

It’s indeed best to imagine a worst-case scenario: being unable to work due to disability for a long-long period. For most people, this problem can cause financial disturbance around the household to a larger extent. Some employers provide long term disability insurance as a part of job advantages, but if you’re not one of them and do not have that insurance, you should get yourself covered as soon as possible. It’s a financial safety net for you to fall back in case of a disability set back. Below are all the FAQs and information to guide you through the plan.

What Is Long Term Disability Insurance?

The term “Long-Term Disability Insurance” is self-explanatory. It protects from loss of income if you are, at some point in your life, unable to work physically for a prolonged period due to injury, physical illness, accident, or any unfortunate and unforeseen event that affects your health and prevents you from working. 

In these cases, your employer gives you a short-term sick leave pay or short-term disability insurance – that covers from 3 months to maximum a year. But it’s not guaranteed for how long you’ll be unable to work so it is required that you have a safety net around you for the worst-case scenario. 

If your employer does not pay you when you’re not working due to disability, this insurance will cover it – paying monthly fees to replace the loss of earning or your salary. Long-term disability plan comes with different policies and conditions, and your monthly premium is usually based on the deferment period (which is explained below). 

How Does This Insurance Work? 

Usually, employers of some companies provide you different health benefits. But mostly, they do not include prolonged disability insurance. Even if they do, they only pay 50% to 60% of your salary and that too for only 3 to 5 months. That’s where you desperately become needy for a long-term disability plan. So a wise decision would be to cover yourself and get your disability insurance plan. It’s very important if you’re struggling with mortgage and loans, and your family’s reliability on your income. All these problems can be pushed back for a prolonged period because of this insurance. 

This insurance policy can provide a salary cover for a definite period – from 2 to 10 years usually – until the employer reaches the age of retirement. 

Standard Long Term Disability Insurance

If the accident that causes your injury happens at work, your employer might compensate for the loss of income for days that you’re unable to work. But it is very unlikely that they cover your whole salary. And if you do not get injured while at work and an accident happens at someplace else, insurance or compensation is out of the option. That is where disability insurance kicks in. 

Short term disability insurance generally covers up to 30 days to a year. But if an injury is serious, it might hold you back for more than a year. In this case, the protection will be the long term plan that financially secures you and your family – paying you a monthly salary for the duration of your recovering period. 

What Are The Benefits of This Disability Insurance?

Plenty. As compared to other insurance plans like income protection, critical illness, health insurance, or employer-employee trust, long term disability insurance always comes out as the best one. 

Critical illness cover only pays you disability checks after making you go through a specific list of conditions. After that, it only pays you in a lump sum, while disability insurance (long-term) pays you a whole amount of your fixed salary. 

Long term insurance offers monthly revenue until the time when you’re okay to fall back on your own feet for work.  What amount you’ll be given is based on up to 70% of your original salary, that’s how much you’ll receive every month. It’s more than enough, more than what other insurance plans provide you. And the authorities make sure that your family is getting a satisfactory life and peace even if you’re not working. This insurance plan always works best for those families who have high-risk jobs and lifestyles, and those families who are dependent on one person or individual for food and shelter. 

What Does Long Term Disability Insurance Cover?

Disability Insurance for a long term is designed to ensure your income in case you’re not working due to accident, illness, or injury. A point should be noted that this insurance will not cover salary or income for any sort of injury that happens at the workplace – this should be covered worker’s compensation insurance, as it’s the worker’s right. Though worker’s compensation does not cover out of the workplace injuries, that’s why you need this disability insurance. 

What exactly it will cover depends upon the policies, terms, and conditions of the insurance provider. You must choose the one that suits you best. 

Getting a payout after insurance claims is when most of the people get shocked – not getting enough. So it is very important to completely calculate the risks of getting an injury outside of the workplace. Of course, the event can be unforeseen. But in the case of insurance, one must always imagine the worst-case scenario. So make sure you’re opting to pay for the policy that will cover you whole in the times of need.

How Long The Disability Insurance Is For?

The benefits of the disability insurance of the long term last until you are fit enough to go to work, for the period which is agreed in your policy. Policies of these insurance run between 2 years to 10 years. Or sometimes, it pays out as long as you are unfit until the age of 65. Well, not all insurance providers provide the same period policy. You should choose the one that best matches your needs. 

How To Compare Different Disability Insurances?

People find it confusing to compare different insurance covers from different providers – after all, they only want to settle for the best one. So the best way to compare insurance plans is to work out the cost of each plan against its benefits. For example, if you’re paying a high premium, will the payout be able to satisfy you completely? And you can also hire insurance experts who will make this job easy for you. 

Moreover, when it comes to insurance plans, one should not look at the costs and decide to go with the one with fewer costs. Instead, consider the one that’s policy offers greater value at the time of payout. 

With all that being said, however, a surface-level comparison of disability insurance covers are not guaranteed to make you end up with the best offer. Mainstream policies have a lot of provisions, but they also have a lot of conditions. One must be very cautious to find the best value offer, and the perfect insurance quote to cover you financially for the years of your life. Long term disability insurance quotes can be obtained in 15 minutes. 

Disability Insurance From Employers

Long term disability insurance, designed to cover you up in case of disability and when you’re unable to work to earn, comes forward when your employer’s sick leave pay runs out. Employers may pay you your salary for like 3 to 5 months. In most cases, bosses don’t go above that. That’s the time when disability insurance helps you. 

With all that kept in mind, you must find out first if your employer even offers you short-term disability insurance. Full-time employees usually have that plan included in their benefits. Get to know for how long the short-term insurance will cover you in case of disability – it can be days or years as per the company’s policy. Make sure to convince your employer to give you a proper and prolonged short-term disability cover and not the cheapest package. But, if your employer does not offer any type of insurance in case of disability, make sure to have some savings to use when you’re disabled until your long-term plan comes into action.  

Long Term Disability Insurance From Employers?

It’s your job to check if your employer offers you a long-term disability plan. We discussed that most often, the insurance employers offer is short-term. But if your employer offers long term disability insurance, check out the percentage of your salary they’re offering you for cover if you get disabled to work, and how long will the policy last. 

If after all the research, you think that the package they’re offering you is enough to pay your debts, mortgages, take care of your family, then it’s done. Choose that one. You don’t need external insurance. But if the answer is no and the employer’s long term package is not helpful and satisfactory, you’d need to cover it up yourself. Financial ability in case you are not working is important, make sure to not just go for the easy one and cheap one – but choose the best one, that’s the safety net for you and your family.

Is Long-term Disability Insurance Worth It?

Accidents and unfortunate events are unforeseen. No one knows beforehand if they’re going to be involved in an injury-causing incident. Ask yourself: do you have enough resources to go on with the years of your life without working if you’re disabled? Does your employer offer you too many benefits that they can support you and your family’s financial needs for the long-term period of not working – that’s like 2 to 10 years. If the answer is yes, which is not in most cases, then the insurance probably is not worth it. However, do deep research and determine for yourself how long the company and your savings will be eligible to support you sick. In almost all cases, people opt for long term disability insurance to be in the safety net without any risks.

If you have a life insurance policy, that might not cover the critical illness insurance. It’s different. So disability insurance is probably the best option for you to go. And its worth is determined by you, and your ability to survive in case of any disabling injury or accident. 

Deferment Period

The deferment period is the period when you’re unable to work due to illness and your Long-Term Disability Insurance Quote hasn’t started paying out yet. While getting your income protected with insurance, you’d decide the longing of the deferment period of your policy. Because if you’re eligible for sick pay or short term cover from your employer, you don’t want to get the disability insurance payout yet. You can start your insurance to payout once the sick pay or short term insurance ends. Keep in mind that the longer the deferment period is, the lower your premiums will be. 

If you’re self-employed, then, of course, you don’t get any sick pay or employee benefits. In that case, your deferment period will be the shortest. To claim the money and payout, you’ll need to go through a medical examination, and such process before your insurer kicks in your payments. 

The most common deferment period is 3 to 6 months, however, it can also be one month if you’re okay with paying slightly higher premiums. You are the one to decide how long you’ll be able to survive without the insurance payouts and select the best one for yourself. As a cover, you can also purchase short-term disability insurance for the deferment period and survive on that until your long term disability insurance kicks in. But it would mean slightly more premium each month.


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