Long-Term Disability Coverage
Workers whose wages are halted for extended periods of incapacity are eligible to receive financial support from their long-term disability insurance policies. Benefits are typically paid out until the retiree reaches a certain age, recovers from their disability, or retires.
What’s the difference between long term and short term disability insurance?
People think disability is something that occurs to others, yet it’s really rather prevalent. Over a quarter of 20-year-olds with disabilities will be jobless for at least a year before retiring.1 Pregnancy, mental illness, and cancer are common disability claims.Two disability problems you may not think about. Therefore, you must protect yourself in case an unexpected sickness or accident prohibits you from working too long. Before choosing a disability insurance policy, you must understand the difference between short-term and long-term disability.
The primary distinction between short-term and long-term disability insurance is the length of time for which you will receive benefits if you become disabled and unable to work. This duration is referred to as the benefit period. As the name suggests, short term disability insurance is designed to cover you for a brief period of time after an illness or injury that prevents you from working. Depending on the policy, short-term disability insurance typically provides coverage for between three and six months. The benefit periods for long term disability insurance are typically stated in years: 5, 10, 20, or even until you reach retirement age, depending on your plan.
Both long-term and short-term disability insurance offer customizable coverage amounts, but short-term disability insurance typically guarantees a greater percentage of your income—sometimes up to 70%. Long-term disability benefits typically cover 40-70 percent of your income, but for a prolonged duration. To determine how what level of coverage you would need, calculate your monthly expenses, and consider additional medical costs you may have to pay if severely unwell or injured. Determine what portion of your income would be required to cover these expenses if you became disabled.
Why Employees Need Long-term Disability Insurance?
Health insurance covers only medical expenses. It will not cover food costs or rent. And Workers’ Compensation only applies in the event of a work-related catastrophe or injury. Research demonstrates that every second, a disabling injury alters someone’s existence.
- One in four 20-year-olds can expect to be unemployed for at least a year due to a disability before reaching the standard retirement age.
- Half of Americans say they would use their savings to support their living expenditures if they were unable to work due to an illness or injury.
Our LTD insurance can assist employees in replacing income lost due to a disabling illness or injury. But we go beyond the benefit by providing assistance to help employees maintain productivity and remain employed. When an employee becomes ailing or injured, we provide the necessary resources to assist them return to work as soon as they are able.
What is Evidence of Insurability?
- Complete and sign a health and medical history form provided by MetLife;
- submit to a medical exam, if requested;
- provide any additional information and attending physician statements that MetLife may request;
- and provide all such evidence at your own expense.
Do I need both short term and long term disability insurance?
Short- and long-term disability insurance are designed to work together. Long-term disability insurance replaces income if your illness prevents you from working beyond your short-term disability benefit period, up to retirement, depending on your plan. During the interim time between your short-term and long-term disability insurance, you will get short-term disability payments. Then you will switch policies. Thus, having two plans helps assure that an unforeseen health crisis won’t disturb your financial stability for months or years.