Protecting your income when recovery takes longer
Long-term disability insurance provides financial support if you are unable to work for an extended period due to illness or injury. It helps replace a portion of your income when you can no longer earn a living because of a serious health condition, giving you stability during uncertain times.
What does long-term disability insurance cover?
This type of coverage applies to medical conditions that prevent you from working for several months or even years. Common qualifying conditions include cancer, heart disease, back disorders, neurological issues, and severe injuries.
Coverage typically begins after a waiting or elimination period, which often ranges from 60 to 180 days. During this time, short-term disability or personal savings may be used to bridge the gap.
How it works
After the elimination period, long-term disability insurance pays a percentage of your pre-disability income, usually between 50 and 70 percent. Benefits may continue for several years or until you reach retirement age, depending on your policy.
Many plans also include services to help you return to work, such as vocational rehabilitation, partial disability benefits, or job retraining.
Who needs long-term disability insurance?
Anyone who relies on their income to support themselves or their family can benefit from long-term disability insurance. This includes:
- Employees whose lifestyle or debt obligations depend on consistent income
- Self-employed individuals without access to employer-sponsored plans
- Professionals in occupations with limited physical demands but long-term cognitive or health risks
Anyone seeking long-term financial security in the event of unexpected health challenges
Why it matters
Health setbacks can happen at any age and often without warning. Losing your ability to earn an income for an extended period could impact your mortgage, retirement plans, savings, and your family’s financial well-being.
Long-term disability insurance is not just about protection—it’s about peace of mind. It ensures that even if your career is temporarily or permanently disrupted, your financial life stays on track.