Long Term Disability

Life threatening illnesses/injuries can damage more than your health. They can affect your working capability and financial condition consequently impacting the ability of your loved ones to meet their need. Till the time you are unable to work long term insurance could assist you in meeting your living expenses. It provides the benefits to help you pay the mortgage, rent, groceries, utility bills, car payments. The policy could also pay for training or other support you need to o back to work. The long-term disability insurance can save the fast diminishing savings that have been saved for the children’s education or your retirement. Assess the benefits you might be entitled to receive already from your employer, the government or other programs before purchasing a long-term disability income insurance policy. Workers compensation insurance for work related injuries are included in the disability benefits from your employer. In case of short-term illness your employer may offer you sick leave or short-term disability insurance or both. Your company might also give (group) long-term disability insurance in case of ill health up to 6 months or more.

In case you become disabled your employer’s (group) long-term disability insurance will pay back a certain percentage of your salary for a certain time period. Usually (group) long-term disability insurance by employees covers up to half or more than half of your salary in case of disability. Long-term disability insurance benefit begins only after the short-term disability insurance benefits are exhausted. Long-term disability insurance benefits continue either up to the age of 65 (or retirement under social security) or till the time you are capable of returning to your job. Some long-term disability insurance policies continue to offer benefits for a time even after you returned to work. Your salary, work experience with your (current) employer and contribution to the social security system will determine your long-term disability insurance benefit. Following conditions are to be met if you are to qualify for social security benefits.

• You have been disabled for 5 months or more.
  
• Your disability is for at least a year or more or will most likely end in death
  
• You cannot be profitably employed in any occupation and not only your occupation at the time your disability.

Monetary protection from your long-term disability insurance policy allows you to pay for bills and other everyday expenses without resorting to your savings. Prior to deciding to buy long-term disability insurance the first step is to verify your eligibility for disability benefits from your employer, the government and other programs. Assess other sources of income including your spouse’s income, short-term emergency savings, investment income or help from friends and family before deciding on the amount of cover you need. Consider buying a long-term disability insurance policy if income from all these sources will be insufficient to meet your expenses. Always compare costs by shopping around before purchasing long-term disability insurance. Search out if you have long-term disability insurance coverage by your employer before buying an individual long-term disability insurance policy. If you are disabled and cannot work for six months or more your employer pays a percentage of the salary (i.e. around 50 to 60 percent). If you give premiums of your long-term disability insurance policy you will be sufficiently covered in an individual policy. On the other hand group long-term disability insurance is only for your employment or membership period. However, suitable long-term disability insurance policy for each individual may vary from person to person.