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Long term disability insurance


People who buy long term disability insurance can enjoy benefits for an extended period. The length of the benefit period for this plan sets it apart from other disability policies.

Generally, people living with disabilities find it impossible to engage in normal activities. This condition puts their jobs and income on hold, leading to financial distress.

Even if your condition restricts your income, you can still receive long-term benefits. Fortunately, you can read all about it in this article

Definition of long term disability insurance

In cases where a disability is expected to last longer, short-term benefits simply can’t fly. While they offer similar benefits, short term disability plans may leave you stranded before recovery.

Therefore, most people opt for long term disability insurance for longer protection. This can also cushion the cost of expensive treatment without reducing your standard of living.

Sometimes these benefits may exceed one year or continue until your Social Security retirement age. Some policies even offer benefits for disabilities expected to last a lifetime.

Ultimately, making plans for LTD insurance can reduce the financial impact of unforeseen injuries. Aside from restoring part of your salaries, it offers benefits to sustain you till you are back on your feet.

What does long term disability insurance cover?

Firstly, you must understand that long term disability insurance does not cover pre-existing conditions. That means you cannot file a claim for a condition you had before purchasing a policy.

Insurance companies specify the provisions and exclusions in each contract so you should review them before paying. Typically, each plan may replace at least 50% of your income. A basic LTD insurance policy covers the following

  • Mental health conditions
  • Recuperation from illness
  • Injuries affecting your movement
  • Surgery
  • Impairments
  • Chronic pain

How it works

Investing in a long-term policy is important the moment you start earning money. Whether it’s an individual policy or an employer’s plan, you must activate it by paying a premium.

This gets you the attention of insurers but not access to benefits. For you to qualify for a payout, you must submit a claim for documentation.

Also, it is necessary to support your claim with reports from medical professionals. After checking your claims and supporting documents, insurers decide if your condition qualifies.

Those who meet the requirement can receive benefits after an elimination period. Providers continue to send this payment until you return to work.

Also Read:  What is disability insurance? 3 Benefits

Benefits of long term disability insurance

Maintains standard of living

A person’s living standards largely depend on their financial status. Without a source of income, you may not be able to afford your daily essentials.

However, with an insurance policy replacing a portion of your income, the story is different. This helps you maintain your living standard without any hassle.

Prolonged benefits

Policyholders already on short-term insurance often combine it with long term disability policy. The major reason is to access benefits for a longer period.

You can also combine yours with your employer’s benefits. After all, double insurance helps you enjoy extra financial coverage.

Income protection

This is the primary need for long term disability insurance. In case disabilities deprive you of your income, it provides an alternative source of income.

Depending on your coverage type, insurers can send weekly payments from 50% to 70% of your regular earnings. With this, you can settle your financial problems and avoid debt.

Financial support for treatment

People living with disabilities spend a lot on checkups and medical treatment. They can afford to fund their healthcare expenses from their insurance payout.

Additionally, they get enough money to last them through recovery. Knowing financial issues are not part of your problems helps you recover faster.


Overall, investing in long term disability insurance may seem unnecessary but it comes in handy on rainy days. It helps you protect your means of income in case any medical condition stops you from working.


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