Long-term disability insurance is a policy that is designed to protect your income in case of an accident or an illness for an extended period of time. LTD policies typically pay you in terms of year 1, 2, 5 or until you reach the age of 65. Typically, these policies have an elimination/waiting period of 90 days before the policy starts to pay. That is why these policies are often designed to start after your short-term disability runs out. Once an event is triggered and your elimination period is met the policy pays you monthly up to the conditions of the policy. Ideally, these policies replace 50% to 70% of your income and can help protect you against financial hardship.
These policies can be purchased in a group setting through your employer or purchased as a stand-alone individual policy. Group plans can either be paid for by the employer in part of full, or can be voluntary, and paid by the employee. Get a quote for a long-term disability plan today.