Long Term Disability

Long Term Disability is an income replacement program that protects the income when the person becomes disabled and is unable to perform their job mentally or physically due to disability. This coverage can be claimed by the disabled person that lasts for at least one year. If the person is injured or ill and is not able to work for about 90 consecutive days then this coverage provide the person with the following benefits such as:-

• A benefit for partial disabilities and for mental health disabilities
• A tax-free benefit of up to 50 percent of gross monthly salary
• 24-hour, 365 days in a year unlimited financial counseling and telephonic legal for families affected by disability

How one can obtain long term disability coverage?

One can obtain this coverage individually or by a group. The disabled person can claim group coverage through a professional group, employer and association. One can purchase individual coverage from an insurance broker directly that depends on medical underwriting.

Who is eligible for group long term disability coverage?

If the disabled person wants to cover long term disability then one should work with the organization for a long period of time and then only one is eligible for long term benefits. If the person is a professional then one should be a member of the group for the specified period of time.

How much income replacement one can receive from long term disability coverage?

The disabled person gets a monthly income replacement in this coverage which is based on the specified amount or gross pre-disability earnings. The person can claim about 50 percent of the gross monthly salary which is tax free.

What is a pre-existing condition exclusionary period in long term disability coverage?

Pre-existing condition means the person is receiving medical care for 3-6 months. This coverage includes these conditions exclusionary period. When the person is working in the organization without having any physical or mental disability then one cannot avail the medical conditions which are not mentioned in the policy. When this period expires then only this condition is covered under the policy.

How much does long term disability coverage cost and who pays for it?

When the person covers individual long term disability then one is responsible for all the costs incurred. When the person covers group long term disability then one is not responsible for any cost or for any premium. This amount can be calculated by the insurance companies according to the employer agreements.

How long does long term disability coverage last?

This coverage lasts from one year up to the age of retirement. The person gets maximum benefits under this policy.