Long-term Disability
What Does Long-term Disability Mean?
A long-term disability is an injury or illness that prevents a person from working for an extended period, potentially lasting several years or more. Long-term disability insurance protects policyholders by providing a portion of their original income, ensuring they do not have to go without income throughout the duration of the disability.
Insuranceopedia Explains Long-term Disability
Long-term disability insurance usually does not cover injuries sustained on the job or those resulting from work-related activities, as these are typically covered by workers’ compensation. Many employers offer long-term disability insurance, which begins once short-term disability benefits end. Given the relatively high likelihood that a working professional may experience a disability before retirement—and with the average duration of such disabilities being around three years—long-term disability insurance can be a valuable safeguard, as this is a substantial period to go without a steady income.
Employer-sponsored plans vary widely in what they cover and how much they pay, so it is worth understanding how disability insurance works before assuming a workplace policy is enough. People who already have a long-term disability and are looking for separate coverage may also want to explore their options for life insurance for people with disabilities, since qualifying for both types of protection can get more complicated once a claim is active.
