Long-Term Disability Insurance

The disability insurance coverage is increasing day-by-day. People are buying the policies for getting the benefits, if they are sick and bedridden for some duration. The insurance policies brought cover all types of disabilities leading to incapability to do work and earn. The disability insurance comes in two packages – short-term and long-term disability insurance.

The long-term disability insurance policies are favored by many insurance companies for the employees. Under this long-term policy, the person is assured a reasonable income per month from the company for sustenance and looking after his family. The long-term insurance cover helps you to get the benefits till you are fit to work or become eligible for old-age disability benefits.

Generally, long-term disability insurance will provide you long-term benefits for a minimum of five years and maximum till you are 65 years old. After your turn 65, you are liable to get the SSI benefits from the government. And then your contract with the company exterminates. The company will then disallow you to receive any benefits on the basis of your insurance policy.

The long-term disability insurance is not easily available like the short-term insurances. They are provided by very few companies and mostly are federal programs like - social security, worker's compensation, and state disability insurance.

But if you are self-employed, you can buy the state disability insurance by paying regular taxes to the state fund. You can individually buy any long-term policy from any of the companies that offer long-term insurance coverage.

But they will cost a lot, since the premiums of long-term disability insurances are much higher. There are, again, two types of long-term policies - one is called non-cancelable and the other is called guaranteed renewable.

The non-cancelable plan is more preferable than the guaranteed one. Here the amount of premium never rises whatever changes might occur in the policy. But in the guaranteed plan, it may happen that the premium amount would change with time.