What Is Long Term Disability Insurance?
Disability insurance provides an injured or sick worker income replacement while they are out of work. The amount of income replacement workers receive will vary. Depending on the policy, you may receive partial or full income replacement. It is very common for short term disability policies to pay a greater percentage of your income than long term disability insurance policies. Most Group Long Term Disability Plans pay 60% of a person’s pre-disability earnings (sometimes those benefits are taxable, and sometimes they are not).It is a fact of life that some injuries and illnesses last longer than others. Long-lasting injuries and illnesses will affect a worker’s ability to work in the long term. Long term disability insurance provides income replacement for this extended period of time.
Disability insurance policies will differ. Determining how long you can expect to receive long term income replacement will depend on your policy.
