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Long-Term Disability Insurance

By May 25, 2022Insurance

Unfortunately, illness, accidents, or disabilities can happen to anyone at any time. Long-term disability insurance helps protect you and your family if you fall ill or become unable to work for any medical reason. 

 

Any working American can apply for long-term disability insurance, and it’s something that we recommend everyone do. Accidents happen, and long-term disability insurance is one of the best ways to ensure that you stay financially stable through those difficult times. 

 

How does long-term disability insurance work? 

When you sign up for a policy, you’ll select the details, dates, payout options, and premiums you require. Choosing the right policy for your line of work and your financial needs is crucial. For example, some policies will pay for a fixed period or until you reach retirement age (whichever comes first). In contrast, other plans guarantee payouts until you reach retirement age, regardless of how long that is. 

 

Usually, long-term disability insurance plans will pay between 50 and 70 percent of your pre-taxed salary. The higher percentage you require, the higher your monthly premium will be. If you choose to receive fifty percent or less of your yearly salary, your premium will be much lower than choosing the maximum amount. Still, you may find yourself in a more difficult financial situation if the time comes. These factors play a significant role in the policy you will choose. 

 

Do I need long-term disability insurance if my employer offers it?

Many employers offer long-term policies or provide discounted options, which is excellent. If this is the case, make sure that you read the policy details and the payout options, as many employers offer lower levels of coverage and payouts. 

 

Many people will use the long-term disability their work provides while also opening their own personal policies. Many private and work-based policies are set up differently and taxed differently. Don’t let surprises like this come when you least expect them. 

 

At Collins Insurance Agency, we understand the details of long-term disability insurance policies. We’d be more than happy to walk you through your options and help you set up a policy that best fits your needs.