Group Long Term Disability (LTD) insurance offers income protection insurance that partially replaces lost income as a result of a disabling non-
Some of these covered expenses include:
- Mortgage or rent payments
- Car payments
- Educational Expenses
- Food, clothing and other necessities
- Medical Co-payments
- Medical costs not covered under other plans
- Travel and lodging expenses for treatment
Long-Term Disability (LTD) provides protection for more serious injuries and illnesses that extend beyond the period of other short-term coverage. The premium for Long-Term Disability Insurance will vary based on a number of factors:
- Elimination periods: These are the number of days beginning with the first day of total disability before any benefit is payable.
- Benefit periods: The duration for which benefits are payable after the elimination period ends. Plans often include choices such as 90 days, six months, one year etc. Some more comprehensive plans include options to age 65.
- Benefit Amount: The benefit amount is usually a percentage of income such as 50% or 60% of salary up to a defined maximum monthly benefit. The maximum benefit allowed is often subject to state specific regulations.
Long-Term Disability also offers the waiver of premium option while benefits are payable. In addition, Long-Term Disability offers a family income benefit paid to the surviving spouse or children.