Home Insurance What is long term disability Insurance?

What is long term disability Insurance?

long term disability Insurance
long term disability Insurance

Most people who do not bother about long term disability insurance probably think that not exposing themselves to risk would keep them safe.

Meanwhile, the Social Security Administration stated that one in four people who are 20 years old today are likely to be disabled before retirement. Therefore, the policy is very vital for the employee, the employer, or an individual.

What is long term disability insurance?

Unlike short-term disability insurance which has limited time to cover an individual in the case of disability, long term disability insurance provides coverage to an insured individual for a longer period.

The policy provides you with financial help for up to two or twenty years, without relying on your savings to make up your lost income while disabled due to illness, injury, or maternity leave.

Since the workers whose earnings are interrupted by lengthy periods of disability are well covered with advantage, it’s advisable to Introduce this plan to your employees to help them make more informed decisions.

Most importantly, Shopping for disability insurance is a unique idea especially when you have a high-income job.

What areas does it cover?

Although long term disability insurance covers you by replacing your income while in a disabled situation, it is still limited to certain disabilities or areas of its coverage. Here is the coverage list:

  • Loss of sight
  • Nerve damage that disrupts the use of your fingers
  • Injury that leads to chronic back pain
  • Serious depression or anxiety that may keep one out of work.
  • Pregnancy complications or childbirth.
  • Heart disease that affects your efficacy at work.

How to access long term disability insurance

The first step to take when you’re temporarily or permanently disabled is to file a claim with your insurance company. Then, you must provide clear information from your employer and your doctor, stating the case of your illness and your inability to work. And that’s it! After investigating and authenticating your claim, you will get your payment, just like your regular paycheck.

However, to access the benefit, you must have passed the elimination period (waiting period), of which the resulting outcome can be compared to a deductible.

The payout is usually the percentage of your income such as 60%. The percentage may also vary based on your policy provider.

More so, how to spend your payment is solely dependent on you without the influence of your provider.

You can choose to spend it on your regular mortgage, utility bills, groceries, car loan payments, child care, medical bills, and more.

Also Read:  Critical illness insurance

Steps to officially get a long-term disability insurance

Estimate your coverage: Determine how much coverage you need. That is, how much you may want to receive as payment, and also choose your waiting period.

Determine your policy add-on: Some companies offer the privilege of policy adjustment that may include the cost of living and your ability to add more coverage anytime in the future.

Do a smart shopping and comparison: Disability companies differ in policy. Therefore, take your time to window shop and compare most policies to each other, to arrive at your best option.

Fill out the application paperwork: Carefully fill out the form with accurate information about yourself without errors.

Phone interview with the insurance company: The next step after filling out your information as stated is receiving a call from the disability insurance company, asking detailed questions about your lifestyle and medical history.

Information request: This process is known as APS (Attending Physical Statement). The company would require a medical exam, verification of your income, and a rundown of your health history from your doctor.

Signing up and depositing your initial payment: After the six steps already listed above, you will have a waiting period of four to six weeks to receive a policy. Next is to sign and forward back the policy with your first payment to kick start your long-term disability insurance coverage.


In conclusion, long-term disability Insurance is a way to secure your financial future. Meanwhile, there is a need to understand the waiting periods, the coverage length, benefit duration, or any retirement income security that may apply. While the employer-provided options are usually more accessible, also know that individual policies still offer greater long term disability Insurance flexibility. But whichever policy you choose to finally shop for, it should be based on your needs. So, to begin as an employee, be sure to talk to your human resources department to be aware of what the job covers and benefits.


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