If you are looking for a comprehensive answer to the question on how long can you stay on long term disability, this article will provide you the relevant information. We will learn about long term disability insurance, how it works, and how you can choose the right one for your utmost benefit.
How Long Can You Stay on Long Term Disability - When does Long Term Disability End
If you are looking for a direct answer to how much disability insurance you need and the length you can be on it, know that it all depends on your needs and what policy you have taken. For more detailed information on this niche, we suggest you continue reading.
What is Long Term Disability Insurance?
Long term disability insurance, also called LTD, is an insurance policy that helps you cover for loss of income if you are unable to work due to illness, accident or any injury. The main keyword to focus here is on the time period. Long term disability insurance is different from a life insurance or motor insurance, as LTD pays out for a very long period of time.
It is important for you to note that the benefit payment period will all depend on what type of policy you choose it will determine how long you will receive the benefits – months, years or decades.
How do Long Term Disability Insurance Policies Work?
During the time of application, there are two things that you need to properly decide. One – length of your elimination period and second – the length of your benefit period.
What is the Elimination Period?
The elimination period is a terminology used in insurance. It is also called the waiting period which refers to the time period between the injury and the receiving of benefit payments. To simplify, it is the time period which shows how long you have to wait after a disability (injury/accident) in order to start obtaining benefits. Usually, many elimination periods begin at three months, which means after 90 days you will start receiving benefits.
What is the Benefit Period?
The benefit period is the term in insurance which refers to the length of time period one will receive the benefits. It depends on the type of coverage plan you choose, you can choose plans that pay out benefits for 2-10 years or you can choose a plan that will pay out benefits till your retirement.
Choose the Right Elimination Period
There are two types of elimination period and each has its own advantages and disadvantages. With a short elimination period, you will start obtaining benefits quickly which will help you to cover the expenses. However, you will have to pay a higher premium. With a longer elimination period, you’ll have a lower premium, but this may not be suitable if you have too many expenses to cover.
Choose the Right Benefit Period
It is a very important decision that you will have to make for long term disability insurance.
Many LTD policies cover up for 2 to10 years, or until retirement, but a 5-year benefit period is usually enough to cover the victim.
Bottom Line
Based on the above information, you should now have a better understanding on how long can you stay on long term disability. LTD insurance is for people who need protection for their income due to long term injury or disability. So, they will have to focus on two aspects one is the elimination period and second the benefit period.
This article was written by Edgar at Phoenix-Pop. Hobbyist and pro-healthy choices, fitness and lifestyle.