Is Long Term Disability Insurance Right for you?

Long term disability insurance covers a portion of a workers’ salary if the person is unable to work for a long period of time due to injury or illness. Long term disability insurance is available for a set amount of time, usually starting after short term disability coverage ends and lasting from two years until retirement age. Policies typically cover from 50 to 80 percent of a worker’s salary. Long term disability insurance is available through a worker’s company insurance plan or from private insurance companies.

Why Long Term Disability Insurance?

Long term disability insurance can fill in important gaps in salary due to unexpected injury or sickness that leave a person unable to work. Common reasons people need long term disability insurance include cancer treatment, heart disease, pregnancy complications and back injuries.

When considering whether to sign up for long term disability insurance, a person should determine:
  • if savings can cover personal finances if a person has to be out of work for a long period of time
  • if children or other dependants will be affected by the loss of income
  • what risk factors contribute to the need for long term disability insurance. Although anyone can suffer an unexpected injury or illness, some are more at risk for specific long-term illnesses. A family history of heart disease, diabetes or cancer can make a person susceptible to these diseases and the need to be out of work for treatment.