An unexpected illness or injury can make it impossible to work and earn an income. Long-term disability (LTD) insurance helps individuals by providing financial support when they can no longer work due to a disabling condition.
In a place like San Diego, California, where the cost of living is high, disabling conditions can be financially devastating for workers.
If you are struggling with a disability claim, consulting a long-term disability lawyer in San Diego is recommended. They can help you navigate the claims process and secure a fair financial support.
What Is Long-Term Disability Insurance?
Long-term disability insurance provides income replacement for individuals who cannot work due to a serious illness or injury. Unlike short-term disability insurance, which lasts a few months, LTD benefits can continue for several years or even until retirement.
According to the Council for Disability Awareness, one in four workers will experience a disability lasting at least one year during their career. Long-term disability insurance typically covers 50% to 70% of a worker’s pre-disability income, helping them manage essential expenses.
Who Is It For?
Long-term disability insurance is beneficial for employees in high-risk professions, self-employed individuals, and anyone who depends on their income for financial stability. It is commonly available through employer-sponsored plans, but individuals can also purchase private coverage. The cost of LTD insurance depends on factors like age, health, occupation, and coverage amount. On average, it costs 1% to 3% of annual income. For example, a worker earning $60,000 annually might pay $600 to $1,800 per year for coverage.
What Does Long-Term Disability Insurance Cover?
Long-term disability insurance covers a variety of conditions that prevent a person from working, including:
- Chronic illnesses – Cancer, heart disease, multiple sclerosis
- Injuries – Severe back injuries, spinal cord damage, brain trauma
- Mental health disorders – Severe depression, PTSD, anxiety disorders
- Musculoskeletal disorders – Arthritis, chronic pain conditions, carpal tunnel syndrome
Some policies cover individuals if they cannot perform their specific job, while others only provide benefits if they are unable to work in any occupation.
How Long Does It Last?
The duration of LTD benefits depends on the policy. Some plans provide benefits for a fixed number of years (e.g., five or ten years), while others continue until the individual reaches retirement age (typically 65 or 67). Most policies have an elimination period of 30 to 180 days before benefits begin, requiring individuals to be disabled for a certain period before receiving payments.
Conclusion
Long-term disability insurance is a crucial financial safety net for workers, ensuring that they do not lose their income due to a disabling condition. Whether you are self-employed or the primary earner for your family, this disability coverage offers financial stability.
If you need help with a claim or have been denied benefits, consulting a long-term disability lawyer can help you secure the support you need. Since one in four workers will experience a long-term disability, having LTD insurance provides peace of mind and financial protection for the future.
