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Long-Term Disability Insurance

Protecting Your Paycheck When Life Changes

What Is Long-Term Disability Insurance?

Long-term disability (LTD) insurance replaces a significant portion of your income if an illness or injury keeps you from working for months—or even years. After a short waiting period (elimination period), LTD pays monthly benefits so you can pay bills, cover your mortgage, and maintain your lifestyle while you recover. Coverage typically lasts until age 65 or 67, making LTD a cornerstone of income protection during your prime earning years.

How LTD Benefits Work

Monthly Benefit

LTD pays 50–60% of your gross income, designed to closely match your usual take-home pay—especially if you pay premiums yourself (making the benefit tax-free).

Benefit Period

Most robust plans pay until retirement age (65/67). Shorter periods—like 5 years—exist, but full-term is best for maximum protection.



When Does It Pay?

Coverage kicks in after the elimination period, often 90 or 180 days after disability begins. Claims can result from illness (cancer, heart disease), injury, or chronic conditions—not just accidents.

Policy Options, Riders, and Customization

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Own-Occupation Definition

The gold standard. Pays if you cannot perform your own job, even if you could work elsewhere. Critical for professionals—e.g., a surgeon who can’t operate but could teach still receives benefits.

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Partial/Residual Disability Rider

Pays a portion of benefits if you return part-time or at reduced capacity.

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COLA Rider

Adjusts your benefits each year for inflation—crucial if you’re young and a disability could last decades.

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Future Increase Option

Lets you increase coverage as your income grows—no medical requalification.

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Non-Cancelable/Guaranteed Renewable

Locks in your rate and coverage as long as you pay premiums.

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Benefit Stacking

Individual policies can supplement group LTD, especially for high earners, bonuses, or additional coverage.

Group vs. Individual LTD—Mind the Gaps

  • Group LTD (from work)

    Great foundation, but often capped at a fixed benefit ($5k–$10k/month) and may only cover base salary (not bonuses or commissions). Many use “any occupation” definitions—meaning benefits may stop if you can work any job.

  • Individual LTD

    Portable, customizable, and usually offers true own-occupation coverage. Keeps your income protected no matter where you work.

Case Example:
A 55-year-old suffers a disabling stroke. With LTD, their policy replaces $5,000/month, preserving their home, lifestyle, and retirement funds—rather than draining savings or relying on Social Security Disability (which averages ~$1,300/month).

Applying for LTD: What to Expect

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Underwriting

Requires income verification and medical history. Occupation class affects rates—desk jobs cost less than manual labor.

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Health

Nonsmokers and healthy applicants get the best rates, but we navigate all scenarios—including policies with exclusions for certain conditions if needed.

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Customization

We tailor your policy to your needs, compare group vs. individual, and help you maximize benefits while minimizing costs.

Secure Your Income—And Your Family’s Future

Every financial plan assumes you’ll keep earning. Don’t leave that to chance. Let’s review your options, compare employer coverage, and secure the protection you need to keep your plans on track—no matter what life brings.

Your LTD Insurance Questions, Answered

  • What does long-term disability insurance cover?

    LTD pays a monthly benefit if you’re unable to work due to illness or injury for an extended period—helping you cover bills and maintain your lifestyle.

  • Own occupation vs any occupation—what’s the difference?

    “Own-occ” pays if you can’t do your own job; “any-occ” stops paying if you can do any work. We help you secure the best definition for your career and goals.

  • How long do LTD benefits last?

    Most policies pay to age 65 or 67; some have shorter periods (like 5 years), but we recommend coverage through retirement for full security.

  • Is individual LTD worth it if I have group coverage?

    For many, yes. Group policies may leave gaps (low benefit cap, weaker definitions, not portable). We’ll review your situation and recommend the best fit.