How Long-Term Disability Insurance Works

Long term disability insurance is an important employee benefit, as the US Census Bureau states that people have a 20 percent chance (one in five) of becoming disabled over their life. Yet, many employees, even workplace veterans, don’t understand how it works.

Long Term Disability Features

• Provides a percentage of the employee’s regular compensation for illness or injury that renders people unable to work at their jobs.
• Is not applicable to work-related injuries covered by workers compensation coverage.
• Does not take effect until short term disability coverage stops.
• Available for individuals to purchase from insurance agents if their employers don’t provide this coverage.

How It Works
A person suffering a disease or injury that creates a long term disability in a non-workplace situation and is unable to work over time is typically eligible to receive payments, albeit less than their regular compensation. Payments are often in the range of 55 to 80 percent of their normal compensation amount, whether they’re on salary or hourly pay, depending on policy language.

Continuing monthly payments usually depend on a doctor issuing evidence that the person is still unable to work. People can also buy supplemental long term coverage, if their primary policy provides inadequate income for their needs.

To learn more about your options, contact Sackett & Associates Insurance Services if you work in California. Serving Sonoma County for over 30 years, Sackett & Associates Insurance Services will give you the information you need to make a wise decision.