Long Term Disability Insurance: Protecting Your Most Valuable Asset

People are becoming increasingly aware of the importance of maintaining your most valuable asset – being able to provide for yourself and your family. Having your working capacity taken away from you can have critical effects on your life: financial, psychological and emotional ones.

That’s why it’s important to have a long term disability insurance policy. You will be able to protect your financial, psychological and emotional state even though you wouldn’t be able to continue working.

A long term disability insurance policy will protect your financial stability by providing monthly coverage as a percentage of your salary if you become disabled. These benefits last for as long as the disability lasts, regardless how long it is, so you can be assured that your savings can be kept intact and safe even if you’re unable to keep working as you did previously.

But, being able to work and provide doesn’t only protect your financial stability, but also your psychological and emotional state. Not being able to work can be a frightening situation to be in. Many worry about how they’re going to provide for their children’s schooling, how they will cover the piling medical bills, at the same time paying the utilities and rent. All these are questions that a long term disability insurance policy solves. You will have your peace of mind knowing that you’re financially safe, regardless if you will be able to work in the future or not.

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Long Term vs Short Term Disability Insurance

While long term and short term disability insurance are similar in some aspects, they are completely different in others. Depending on your personal information, your lifestyle and what you’re interested in, you will benefit more from one type of disability insurance.

Some of the main things short term and long term disability insurance are different in are the following:

The provider

First and foremost, what long term and short term disability insurance are most different in is the provider or the source through which the person gets the insurance. Short term disability insurance is most often offered as a benefit from the employer through group insurance policies, while long term disability insurance is usually bought individually to provide additional coverage or completely separate from the employer.

The duration

What separates short term from long term disability insurance is the duration of the benefits. Short term disability insurance covers injuries lasting anywhere from 3 to 6 months, after which the long term disability benefits pick up and last for the whole duration of the disability.

The coverage

The final difference in the short term and long term disability insurance is the coverage amount you would potentially receive if your policy is activated. The monthly payments you’d receive are usually stated as a percentage of your salary, and in short term disability insurance, they are usually around 70% of your salary, while for long term disabilities, they are usually around 60% of your monthly salary. This would be in reference to group long term and group short-term disability insurance and percentage depends on the specific plan the employer is offering.  Individual disability insurance plans are not based on a percentage but certain parameters that are purchased and definitions exist in the individual disability insurance policy tailored for that specific individual.

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What is Long Term Disability Insurance ?

The long-term disability insurance policy is a type of insurance people get to protect them in case if they become disabled and unable to work for a long period of time. It’s rarely offered by an employer as a benefit, so most people decide to buy a private long term disability insurance, but even if it is, many decide to get additional coverage for themselves.

The long term disability insurance policies are paid through monthly premiums that depend on the coverage, the occupation of the policyholder, their personal characteristics, as well as the coverage period. These premiums are paid on a monthly basis and depend on your personal characteristics, like your age, your job, your daily habits, your family’s medical history and even where you live at the moment. These factors don’t only change the amount of your premium, but also the coverage sum you will receive during the potential disability. 

-        If you’re wondering why people decide to get long term disability insurance, there are multiple reasons, and solid ones:

-        It gives the holder a solid source of income while they’re unable to work and earn for a living

-        Protects the worker’s well being

-        Helps cover the medical expenses related to an injury and the utility bills

-        It’s the only type of disability insurance you would need for a long-term disability

Finally, the long-term disability insurance benefits last as long as the person is disabled up to the maximum benefit period selected.

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How Long Term Disability Insurance Work ?

Long-term disability insurance protects an employee if they become disabled for a longer period of time. It starts once the short-term disability of the employee ends (usually after 3 to 6 months). The way long term disability insurance works is pretty simple and the same as the other types of insurance. Whenever you want to activate one, all you have to do is the following:

Fill out an application form:

Once you’ve chosen an insurance provider and the type of insurance you want to get, you need to fill out an application form with information on your age, occupation, medical history and a few questions about your lifestyle and habits.

Take a medical test:

As an additional confirmation of your medical state and health, you will need to take a medical test that will confirm all of this.

Pay your monthly premiums:

Once your long term disability insurance policy is formed and you’ve activated it, you need to pay the premiums for it, usually on a monthly basis.

After this, you’re officially an owner of disability insurance. If you become disabled, the long term disability policy doesn’t activate immediately. Instead, you receive your short term disability insurance benefits for the first couple of months (3 to 6 months), and after that the long term disability insurance kicks in. This means that you will receive monthly compensations for your costs as a percentage from your salary, usually around 60%. Benefits varies between disability insurance carriers.

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Long Term Disability Insurance: How to Get It

Long term disability insurance is an insurance policy that protects your income if you become unable to work for a long period of time, usually more than a year.  It’s rarely offered by the employer as a benefit, so most people have to look for their own way of getting one for themselves, a process that can be complicated at times.

So, how exactly can you get a long term disability insurance? The process usually takes around 6 weeks to complete and is done in a few steps:

 1. Choose an insurance provider that offers the best quotes.

2. Fill out the paperwork with basic info on yourself, your job details and income documentation.

3. Sign the authorization form to allow the insurance provider to receive your health information.

4. Schedule and take the medical exam (height, weight, pulse, blood pressure and a blood and/or urine sample). Make them aware of any preexisting health conditions or diseases you might have.

5. Talk to an insurance representative and answer their questions about your health, lifestyle, habits and medical history.

6. Wait for your insurance policy to be prepared according to the previous information you’ve provided (the more complex your lifestyle and health, the longer this period is).

7. Buy your long term disability insurance policy through signing the delivery receipt and authorizing a payment method to activate it.

With this, your long term disability insurance policy is active and you’re protected against any potential loss of income.

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Advantages Or Benefits Of Long Term Disability Insurance

Having long term disability insurance may seem costly, but when you compare it for the invaluable benefits it can potentially bring to you, it’s clear why so many people decide to have one for themselves.

While the value you can potentially get from long term disability insurance if you’re injured an unable to work is apparent, having long term disability insurance has some other major befits you may not realize.

Part of those benefits include:

·         Your family is financially safe because you will have a guaranteed monthly source of income

·         You will be able to cover all your monthly expenses, including utilities, rent, groceries or debt payments

·         You will have a steady income even if you are unable to keep working as previously

·         It allows you to take the time to heal and recover from your injury

·         It offers you peace of mind that regardless of what happens, you and your family will be protected financially

·         Minimizes the risk of you falling into major debt or becoming depressed as a result of your stress

·         You won’t need to purchase additional disability insurance policies

·         If long-term disability insurance is bought through group coverage, it makes it more affordable

As you can see, there are so many benefits arising from having long term disability insurance, and not only financial ones as many may think. In the end, with long term disability insurance, you, your family and those around you are protected through it, something that is priceless.

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Requirements for long term disability insurance

Before you apply for long term disability insurance, you need to get familiar with the requirements to have one. These requirements depend on a variety of factors, predominantly from the long term disability insurance policy you’ve previously signed and on the insurance provider you’ve chosen.

In general, all long term disability insurance plans have some general aspects and terms you need to become familiar with, as well as how they work.

Full time or part-time work

Most long-term disability insurance plans require that you have a full-time job at the moment of disability. The exact definition of what a full-time job is and the working hours needed are usually described in the long-term disability insurance policy, so before you get your long-term disability insurance, make sure to get information on exactly what is included.

Elimination period

When you’ve experienced a long-term disability, before you’re eligible to receive long term disability insurance benefits, there is usually a waiting period. This period varies depending on your long term disability insurance policy and your provider, as well as you having or not having short term disability insurance. These factors are individual, so make sure to consult your insurance agent on what the conditions are for your long-term disability insurance policy.

Pre-existing conditions

Most long-term disability insurance policies have a section with pre-existing conditions that are excluded from the long-term coverage. To put it simply, conditions which are not covered in the long-term disability insurance plan, but only if you have them a certain period of time prior to signing the long term disability insurance policy. If these conditions or illnesses happened after you got your long term disability insurance, you will be eligible to receive long-term benefits for it.

Covered conditions 

Before you sign your Long Term Disability Insurance Quote policy, make sure to check which conditions are excluded from it. There are jobs that carry a risk of specific long-term disabilities, and if your job is one of those, you need to confirm that that type of disability is covered in your long-term disability insurance policy.

People slowly realize that long-term disability insurance is not only a benefit that’s good to have, but it’s also becoming a necessity. There are so many unpredictable things that can happen in life, some of them can leave you disabled for a long period of time. These types of situations require long-term disability insurance to be had, so the person can be protected not only financially, but also emotionally and psychologically.

We can provide you with highly-qualified and experienced insurance agents from across the country that can help you with anything related to long-term disability insurance. They can clarify any uncertainties you have, answer all your questions and offer you a long-term disability insurance plan that will protect your finances in the long run.