Long Term Disability Insurance – Look Into Pros And Cons!


In the event of a person needing financial help drastically, the Disability insurance comes in handy. Long term disability insurance provides benefits most often till the age of sixty five or spans over a minimum period of at least five years.

There are two ways by which people can get long term disability insurance. It can either be provided by the company who is employing the person or the person himself can buy it.

Before purchasing long term disability insurance it is essential to be aware of the main types of policies which are available. Generally there are two types - the non-cancelable and guaranteed renewable. In these types of policies, the cancellation or refusal to renewal of policy cannot be executed by the insurer as long as the necessary amount of premium is being paid on time. The difference in these two types of policies is with regard to the premium.

In case of a non-cancelable policy, the premium cannot be increased above the existing amount shown in the policy as long as they are paid on time. In the case of guaranteed renewable policies, however, the premiums can be increased above the amounts shown in the policy, but only when a specific group of people stand to be affected by it. This is the reason for low cost initial premiums for guaranteed renewable policies as compared to non-cancelable policies. There are other options too in the form of less costly premiums or renewable guarantees.

Long term disability insurance income provides living expenses and helps during depletion of savings which can be used for other purposes.

To get all the relevant information, you can seek the help from various agencies, booklets and informative websites regarding various aspects of long term disability insurance such as what options are available, how they arrive at some particular figure of amount, the time limit to file claims, etc.