Benefit Basics: Long Term Disability Insurance

You can't predict when a sickness or an injury might happen to you. And if it's serious enough to prevent you from working, a loss of income could be stressful. That's why you may want to consider long-term disability coverage for when you're injured or ill and can't work. Long-term disability insurance provides you with benefits to replace a part of your paycheck when you can't work because of a sickness or injury. The monthly cost of long-term disability coverage varies based on the amount of coverage and sometimes your age. Your monthly premiums could be less than dinner for two at a casual restaurant. You may need to meet certain conditions to be eligible for benefits, such as completing a waiting period. Generally, long-term disability benefits begin once you have exhausted your short-term disability benefits, if applicable. Benefits are paid for the duration of your medical condition to the maximum duration allowed by your employer's plan or until you reach Social Security Normal Retirement Age. Here's an example of how it works. Meet Keith. He and his husband love hiking and fishing. On their latest trip, Keith severely injured his hip and leg. The injury made him unable to work for a year. Fortunately, Keith had long-term disability coverage through his employer. After he satisfied the waiting period, it provided benefits to replace 60% of his regular pay while he couldn't work. As Keith was expected to recover, he was not eligible to receive Social Security disability benefits. The benefit he received helped the family pay their everyday living expenses while also supporting Keith while he recovered. Having long-term disability insurance could help lower the financial impact of an illness or injury that prevents you from working and maybe even keep you from dipping into your savings. Consider applying for long-term disability insurance at your next Open Enrollment. For costs and complete details of the coverage, please ask your employer for more information.