Do You Have Long Term Disability Insurance?

Do You Have Long Term Disability Insurance?

There is a wide variety of insurance people purchase as coverage for major areas of their lives.  We have insurance for cars, boats, doctors, dentists, and even expensive items like jewelry. Many people also acquire coverage for life insurance to help their family after they are gone.  But one area many people forget about it long-term disability insurance.

Long-term disability insurance provides funds in case something happens and there is an extended period of time when you are unable to work due to injury or illness.  It replaces your salary in case something disabling happens to you.

Benefits of Long Term Disability Insurance

Although none of us want to imagine it, the reality is that life-changing accidents and illnesses happen regularly.  If your family is dependent on your salary, becoming disabled can lead to major financial issues, including bankruptcy.  Long-term disability insurance protects you from this.

Here are a few of the benefits of long-term disability coverage:

  • It can help pay for food, clothing, utilities, your mortgage, car payments and more.
  • After an initial waiting period, you can receive direct monthly payments where a portion of your salary is paid directly to you.
  • Coverage may include financial incentives for rehabilitation, which is designed to help you transition back to work.

Be Aware of the Varieties

As with any insurance policy, you need to be thoughtful when choosing your coverage. Here are just a few examples of differences to choose from:

  • Accident-only policies, which would not cover illnesses.
  • Short-term policies that would only cover 3-12 months versus long-term can cover up to two years.
  • Choices of “elimination period” which is the amount of time between when you submit a claim and when you begin receiving benefits.
  • Ability to increase coverage as your income increases over time.
  • Cost-of-living adjustments so that your benefits increase each year based on inflation.

Luckily, you can design your coverage to fit your particular situation.  Even though a salary is a vital component to most people’s lifestyle, many people are not paying insurance to protect it. If you would like to know more about long-term disability insurance, hb&k offers Wealth Management services.  We would be happy to set up a meeting to discuss your options.


Earl Blackmon is the author of this blog.  Earl is a shareholder of hb&k, a Lean Six Sigma Consultant and the leader of our Wealth Management Services.
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