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Long-Term Disability

Disabilities are not easy to cope with. Unforeseen incidents or injuries can leave you unable to work and without a monthly income.

As a business owner and employer you try your best to keep a safe working environment and to protect your employees. With a little planning you can protect your business, your employees and yourself from any adversity.



What is Long Term Disability?

Long term disability helps employees unable to work full time or for an extended period due to an illness or injury. Long term disability insurance has many benefits but the main one is to ensure that the employee will receive a percentage of their income.

Long term disability insurance is usually provided by employers as part of a comprehensive employee benefits package. According to the U.S. Census Bureau, an employee has a one in five chance of being disabled. That fact makes this benefit even more important to you and your employees. If an employer does not have a plan you can purchase an individual LTD plan. Individual plans are expensive which is why they are seen more frequently as part of an employer package.

How does it work?

LTD benefits start when short term disability benefits end. Like STD you have to apply and require documentation from a doctor. If you have short term disability it may automatically turn into LTD. Depending on the plan you have, LTD insurance pays an employee a percentage of their salary, typically 50-70%. Some benefits have a defined period and some polices will pay an employee until a certain age.

It is important to read over your LTD benefits as each has varying conditions for payout, diseases or pre existing conditions that may be excluded. A big one to watch out for is weather the insurance pays if you are unable to perform your job or any job. If it says “any job” they would expect you to work anywhere you can and supplement your salary accordingly. These differences have a big impact if supplemental coverage is needed.

If you would like to add STD and LTD to your benefits package contact one of our health insurance professionals right now.