What are Long-Term Disabilities?

Long-term disabilities (sometimes called permanent disabilities) are any disability that lasts more than a year. Such conditions can be caused by an accident, disease, or birth defect. Conditions like spinal cord injury, blindness, cancer, and diabetes are just a few examples of what is considered to be a long-term disability. In the United States, a long-term disability policy can be purchased, that will replace a percentage of the policy holder’s salary if they become disabled and unable to work. The policy is purchased through an insurance company and can cover the insured from anywhere from $5,000 a year to $200,000 per month.

People who have long-term disability insurance can apply for benefits when they are unable to continue to do their usual job or when they are unable to take on another one that is suitable–either due to medical issues or because they are mentally incapable of it. If you have long-term disability insurance and become disabled, your insurer may require that you submit a claim every six months or so. This process also depends on the type of policy you purchased. Also, not all medical conditions are covered in this policy. There are certain conditions that qualify for LTD in the United States.

When Do Long-Term Disability Policies Pay Benefits?

In the United States, policies covered by the Social Security Administration will pay benefits through the month in which the disability began. Policies that are not covered by the Social Security Administration will pay you benefits for a period of up to 10 years. When Your Long Term Disability Insurance Benefits Begin

LTD policies are paid in lump sum amounts (cash at once) or they may be paid weekly, biweekly, or as a set amount each month. The amount of each payment is dependent on your policy and how long you have been disabled. After your policy has been fully paid, you may collect further payments based on your current insurance company’s policy on LTD policy payouts.

What Happens If I Quit My Job?

It is highly recommended that you try to continue your job as long as you can. Long Term Disability insurance policies do not pay benefits if you stop working before the end of the policy term. Remember, if you quit before the end of your policy term, you may lose all of the payments covered by your insurance policy. 


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