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| Long Term Disability |
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Long term disability means that you have sustained an injury due to an accident or developed an illness that makes it impossible for you to work for an extended period of time, which is most often classified as anywhere from a period of three to six months or in some cases even longer. Some insurance policies automatically switch your status from short term to long-term disability once you past the 90-day mark of not being able to work. With regard to most insurance companies, when a person is on long-term disability they will receive approximately 60 percent of their yearly wages or salary. For some people who already have savings this would be enough, for others it would not. Do not assume that because you are healthy that a long-term disability would never happen to you. Despite healthy and safe living, anyone, young, old or middle aged, can become afflicted by a disability at any time in his or her lives.
Long-term disability can usually be extended to last five years if it is required, or else up to the point of time when an individual reaches the age of 65. This type of insurance is worthwhile to have and can be purchased either through one’s employer (if that is an option) or else on an individual basis through an insurance company of your choosing.
Be aware that you can first purchase disability insurance for a short-term disability, which then can be rolled over into long term disability coverage if it is needed. Short-term disability helps replace income you lost at the very start of the time when you fell ill or injured yourself. Not all insurance companies offer the same types of short term and long term disability so it is worth your while when you are healthy to look into all of your options and then pick and choose carefully. The span of time that short-term disability will provide financial assistance for a person who cannot work differs from company to company. Some insurance companies provide benefits for a two-week span of time when the injury or sickness first took place up to a period of two years. However many long term disability policies kick in after three to six months, as stated above, therefore it is always in your best interests to determine if you will need short term disability or if your disability is serious enough to warrant you being out of work longer and requiring the status of long term disability.
The long-term disability (LTD) coverage you get varies from company to company and the guidelines are not the same across the board. For example some companies classify long-term disability, as beginning after a person has been unable to work for a period of at least 17 weeks. If after 17 weeks the person is still unable to work due to the disability then the long-term disability payments can commence. Some insurance companies require their policyholders to fill out a health questionnaire and/or be checked out by a doctor or healthcare professional that can verify that there is a disability. In order to continue to receive LTD benefits you must be able to prove by way of a form from your doctor that you are still disabled and therefore cannot work. .
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