Long-term disability insurance helps ensure that employees will still receive a portion of their income when they are absent from work for an extended period due to a covered disability. These absences may be a result of accidents, injuries or illnesses that happened on or off the job.

Long-term disability insurance and individual disability income insurance can help financially protect you if you were to become unable to work due to an illness or injury that keeps you out of work for over 90 days (this is the typical elimination period but policies differ and you would need to verify the exact terms …

We think long-term disability insurance is the only plan worth buying. When you look at the numbers, long-term disability insurance really is your best option. We recommend getting coverage for at least 5 years or more, to cover long-term loss of income that your 3-6 month emergency fund won’t cover.

Usually, group long-term disability insurance is fully paid for by employers, with no contribution expected from employees. When you receive employer-paid disability income, you must pay federal and state income tax on the benefits, unless your company pays it for you.

Although an employer cannot legally terminate an individual just because he/she is receiving LTD benefits, or solely because of the disability, many employees are at-will, which means that an employer can terminate an employee for other reasons.

Taxation of Disability Benefits If you become disabled and make a claim to receive benefits, the monthly benefits may or may not be taxable as income. Your employer offers long term disability coverage through a group plan. The plan promises to pay 40% of your salary if you become disabled and can’t work.

While not required, some employers offer continued health insurance coverage while a worker is on short or long term disability leave. Short and long term disability benefits do not cover the cost of health insurance premiums. Rather, STD and LTD policies pay a percentage of your income while you are unable to work.

Long term disability (LTD) benefits are crucial for ensuring that you continue to receive income when you are disabled and cannot work. Your LTD claim can be denied due to missing medical records, legal technicalities, or conflicting evidence collected during your insurance company’s investigation of your claim.

Long Term Disability (LTD) can be used following Short Term Disability (STD) plans or alone. Long Term Disability coverage provides wage replacement that is between 50-70% percent of your earnings before a non-work related injury impacted your ability to work.

Here Are 5 Steps to Apply for LTD Benefits:

1. Request an Application from Your Employer.
2. Complete and Submit the Employee’s Statement.
3. Acquire Your Employer’s Statement.
4. Get a Statement from Your Attending Doctor.
5. Submit Anything Else in Your Possession that Supports your Disability Claim.