Long Term Disability

No one wants to think about becoming disabled. A long term disability can feel like a death, accompanied with a crippling inability to maintain the job that paid for rent, groceries and even doctors’ bills. According to the Council of Disability Awareness, the average long term disability lasts for 2.5 years, a span which can be incredibly difficult to survive without a steady income. For this reason, many experts consider long term disability insurance the most important insurance to own. Long term disability insurance can protect your employees from the devastating effect of a serious disability.

Long term disability insurance benefits come into effect once the time limits for short term disability benefits have been reached, usually after three to six months. These benefits replace 50 to 70 percent of your employee’s income and will last between two and five years or until the employee turns 65. As with short term disability insurance, long term disability insurance has limits regarding how much a disabled employee may receive in benefits in a given month.

There are many ways to customize your long term disability insurance plan. Policies may be considered “guaranteed renewable” or “non-cancelable.” A guaranteed renewable plan cannot be dropped by insurance agencies except in the case of skipped premium payments. Non-cancelable means that the insurance agency cannot raise the premium on the policy. Other policy options include residual benefits which make up the difference between your employee’s new and old salaries should they find a new job but with a lower salary, and “cost of living,” which allows the insurance policy value to adjust with inflation.

Employers may pay for disability insurance with pre-taxed dollars and often provide long term disability insurance benefits in conjunction with short term disability plans. Our team is excited to help you find the long term disability plan that works best with your company’s specific needs.

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