Long Term Disability Insurance
A serious illness or injury can harm more than your health... it can impact your ability to work and lead to extended loss of income.Long-term disability insurance can provide a steady source of income when you can't work to help take care of living expenses.
Long term disability insurance is essentially paycheck protection, providing cash directly to you to cover mortgage payments, rent, groceries, utility bills, car payments, etc.
Disability insurance also keeps you from depleting the savings you've accumulated for your children's education or your retirement.
The U.S. Census Bureau estimates that American workers have a one in five chance of becoming disabled and the average long-term disability (LTD) absence from work lasts 2.5 years, according to the Council for Disability Awareness. That's a lot of bills to pay without a source of income.
Cancer continues to be the leading cause of long term disability, according to Unum Group. In 2007, cancer led to more than 12 percent of LTD claims, followed closely by pregnancy complications and back injuries.
A long term disability policy pays a percentage of your salary (generally 50% - 70%) for a period of 2 years, 5 years, or until age 65, depending on the policy.
By paying your own long term disability insurance premiums, your disability benefits will be tax-free. If your employer pays for the policy, on the other hand, your disability benefits can be taxed as regular income.
Disability insurance is of those things people put off because there ar so many other things to take care of. But stop for a minute and envision how your life would be affected if you suddenly lost your income because of illness or injury.
Think about it.
How would you pay the mortgage and other bills for a year or more?
How would you maintain your current standard of living?
The combination of affordable short term disability insurance and long term coverage can help ensure your family's income and standard of living continue regardless of your ability to work.
Coverage Through Work
Your employer may offer long term disability insurance as part of your benefits package or offer it as an option for which you can pay the premium. These policies are generally full of exclusions and can give a false sense of security. We recommend looking at supplemental disability insurance to ensure you're properly covered.
If you are considering long term disability insurance and have questions, please submit your information using the form to the right to contact a certified disability insurance advisor.