Long Term Disability 101
Long Term Disability Insurance provides you and your family with financial protection if you become disabled due to injury or illness and cannot work for an extended period of time. There is an initial period of time following the start of a disability, called a qualifying period, when benefits are not payable, usually three or six months. After this period has elapsed, benefits are paid on a monthly basis and can continue up to Social Security Normal Retirement Age.
An employee must meet the definition of disability outlined in the policy. In many cases, that means the person is unable to perform the material duties of his/her own occupation while under the regular care of a physician, or if still able to work, cannot earn at least 80% of pre-disability monthly earnings because of the disabling condition.
Long Term Disability Insurance is an important part of a financial plan. According to the American Council of Life Insurers, 30% of all Americans between ages of 35 and 65 become disabled for more than 90 days. ACLI estimates that the average length of disability for working adults who have been disabled more than 90 days is three years. In a survey conducted in conjunction with the Consumer Federation of America (CFA), ACLI found that over 80% of workers either had no long-term disability insurance or believed their coverage to be inadequate.
The need for Long Term Disability Insurance can be met through group voluntary long term disability plans. Have your employer
contact Ochs, Inc. for additional information.
