There are three universal certainties in life. Death, taxes and curveballs.
The first two are well understood.
Let’s consider curveballs.
Every person I know has experienced some kind of personal tragedy or significant drama in their lives. This is without exception. Life is entirely predictable in its unpredictability. Status, wealth, nationality, royalty do not provide any protection against calamity. For example, consider you suffer an unfortunate and utterly unexpected accident which leaves you unable to work for the rest of your life.
With that rather frightening thought in mind, let’s take a look at long term disability insurance. What is it? Why do you need it? What does it cover? Is it worth it?
Let’s dive right in.
What is Long Term Disability Insurance?
Long-term disability (LTD) insurance provides financial benefits to employees who cannot work for an extended period due to an accident, illness, or injury.
In other words, your income will be replaced if you become disabled and cannot work.
There are many different policies to choose from. Some are better than others, and some are not good at all. Consult an experienced, highly specialized long term disability lawyer when considering taking out an LTD policy.
LTD lawyers also specialize in assisting people in getting their LTD benefits paid out by insurance companies. Some companies seem happy to take premiums but resist paying out cash. Depending on your policy, benefits begin after 60, 90, 180, 365, or 720 days and payments last for two, five, or 10 years, or until retirement. Typically, coverage costs between 1% and 3% of your annual salary and rates depend on your personal profile, policy terms, and job.
Why You Need Long Term Disability Insurance
Did you know that a quarter of young workers will become disabled before retiring, leaving them without income for an unknown amount of time?
It is a common misconception that such a catastrophic event will never happen to you, especially amongst young people.
The truth is that tragedy can strike at any time. If you are left unable to work, the financial consequences will be dire. LTD provides you with a safety net. It is not expensive and worth gold when you need it. In a nutshell, everyone should have LTD insurance in place.
LTD insurance is critical to have, regardless of what job you have. For example, accounts executives and mine workers could face the same challenges.
What does LTD cover?
LTD insurance benefits cover wage replacement and do not cover actual health costs.
Examples of types of disability covered include:
● Multiple sclerosis
● Epilepsy
● Sciatica
● Paralysis
● Dementia
● Alzheimer’s
● Parkinson’s disease
● Amyotrophic lateral sclerosis (ALS)
● Bell’s palsy
Is LTD Worth Having?
LTD insurance is not expensive. When you consider the risk and reward profile, it is definitely worth having. It will protect you and your family when needed. If it is never needed, that is even better for you, and you will have had the peace of mind that it is in place, just in case. Fortunately, disability insurance is a common perk if you have a high-risk job.
In Summary
LTD insurance – can you afford not to have it is the question!
Remember that disability insurance isn’t there to make you rich! It’s there to pay the bills and put food on the table if something happens to you.
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