Long Term Disability Insurance

The ins and outs of long term disability insurance - just remember - cheaper if you're in a group policy.

Long term disability benefits assume the role of paying you after short term disability benefits expire. This will occur approx. 3-6 months after disability. The percentage of salary compensation ranges usually from 50-66%. You would receive benefits until you are at the age of 65. A group long term policy could price in the few hundred dollars per year. Remember: group rates are usually cheaper than individual.

If you pay your own premiums and do so with after-tax dollars, your disability benefits will be tax-free. If your employer pays for the policy, most likely with pre-tax dollars, your disability benefits will be taxable.

Most disability insurers will work with employers to try to get you back to work as soon as possible. While disability insurers want to see people healthy, rehabilitated, and back to work, they also save significant dollars if a claimant quickly returns to work.

Related Article: Disability Plans - What to Look For! >>