January 22, 2019
Long-term disability insurance is implemented to protect employees from loss of income in case they are unable to work for an extended period of time due to injury or illness. Here, the disability insurance specialists at Disability Associates detail why investing in long-term disability insurance may pay off.
An Overview of Disability Insurance
There are two types of disability insurance: short-term disability insurance and long-term disability insurance. Short-term disability insurance, or short-term disability insurance, replaces a portion of one’s paycheck for a short period, typically three to six months. There are a few ways of acquiring short-term disability insurance; you can get an individual policy through a private insurance company, but most people get short-term disability insurance from their employer.
Long-term disability insurance provides coverage for a longer period of time, therefore providing security for years or even decades. While some employers offer long-term disability insurance for their employees, many long-term disability insurance plans are taken out through private insurance companies in order to provide security for chronic illness or serious injuries that may prevent you from working for an extended period of time.
Long-Term Disability Insurance Can be a Beneficial Investment
Long-term disability insurance can be beneficial, and even necessary, for many individuals who do not believe it applies to them. For instance, 65% of respondents to a survey conducted by LIMRA said that most people need disability insurance, but the percentage dropped to 20% when respondents were asked if they personally had disability insurance. While many individuals are wary of acquiring long-term disability insurance due to the belief that they will not ever encounter an event that will require them to have long-term disability insurance, it may be helpful to have this insurance as a safety net. Since long-term disability insurance can cover a wide variety of chronic illnesses or injuries, such as cancer or a muscular or skeletal condition, it can prove to be a wise investment.
Types of long-term disability insurance vary depending on the plan in which you invest. For instance, some plans indefinitely pay 50 to 60% of your income for the time period you are unable to work, which can vary from two to ten years. Other policies provide security until you reach the age of 65. Long-term disability insurance generally begins after a three-to-six month waiting period, during which recipients will receive short-term disability insurance. After the waiting period is up, recipients will begin to receive long-term disability insurance.
There Are Many Ways to Acquire Long-Term Disability Insurance
Some long-term disability insurance plans can be acquired through the recipient’s employer—however, not all businesses provide long-term disability insurance to their employees. Therefore, long-term disability insurance can be acquired through various private insurance agencies. Many individuals take out supplemental long-term disability insurance policies when acquiring private insurance, but you can also take out one of two types of private long-term disability insurance policies, own occupation disability insurance and any occupation disability insurance.
Own occupation disability insurance applies to an injury that prevents you to work at your normal occupation, though this disability may not prevent you from working another occupation. Any occupation disability insurance can be used by a recipient who undergoes an injury or illness that prevents them from working any occupation.
Speak to a Disability Insurance Attorney at Disability Associates for More Information
While many individuals believe they do not need long-term disability insurance, it is a necessary insurance plan that is often essential for those who have their capability to work restricted by an injury, illness or accident. If you have sustained a serious injury or illness that affects your position in the workforce, it is imperative you have legal counsel on your side so you can ensure your financial security despite your inability to work. The dedicated disability insurance attorneys at Disability Associates have decades of experience providing legal representation for those who qualify for long-term disability insurance and can help you receive the security you need. If you would like to speak to a disability insurance attorney about short or long-term disability insurance, contact Disability Associates today.