Have you heard of long term disability insurance? Have you heard of it, but are not really sure what it is? Long term disability insurance, like other types of insurance, can be very helpful should the need arise. Here, we will go over what exactly long term disability insurance is and why you might want to get it for yourself.
What Is Long Term Disability Insurance?
Should you have a serious injury or illness that prevents you from working, long term disability coverage can help keep you financially afloat while you are unable to work. You could think of long term disability insurance as a kind of income protection. It is designed to provide coverage for those injuries and illnesses that prevent you from working for three or more months. This means that permanent disabilities where you are unable to return to work at all are included.
While many employers offer long-term disability insurance as an employment benefit, you can also get your own policy outside of your employer sponsored plan. Self-employed individuals may also want to consider long term disability insurance as it can be a wise investment. Disability insurance, like other types of insurance, requires you to pay a monthly premium and, should you suffer a debilitating injury or illness that keeps you out of work for an extended amount of time, will pay out benefits to you.
The policy itself will detail important aspects of what you are signing up for. Look at the policy to see what the actual benefit amount will be should you need to access your benefits. You will also want to note the elimination period. The elimination period is the amount of time you must wait after you become disabled before you can start collecting benefits under your long term disability policy. The benefit period is also an important policy aspect as it will state how long you will receive disability payments. Your policy will also define what a disability is considered to be, and what will and will not be covered. The premium amount will also be stated in the policy and that is what you will be responsible for paying on a monthly or annual basis.
Arguably one of the most important aspects of your long term disability policy, other than how much the policy will pay out to you should you become disabled, is what it defines to be a disabling condition. Some of the most common reasons people seek benefits under a long term disability policy include:
- Musculoskeletal disorders
- Depression, anxiety, and other mental health issues
- Fractures, sprains, and strains of muscles and ligaments
How disability is defined in the policy will dictate whether or not you will receive any benefits at all for your injury or illness. Sometimes a policy will grant benefits for an injury that prevents you from going to your regular job, even though you may still be able to engage in other types of work. Other policies will not pay out benefits if there are other types of work you can still engage in, even if these jobs would pay less than your regular job.
Do you have questions about long term disability insurance? Disability Advocates has answers. Contact us today.