Long Term Disability Insurance: Benefits Worth Knowing

Long term disability insurance is a type of insurance that can take care of you in the event that you suffer a long term disability. The benefits of long term disability insurance that can be protection from serious financial problems. A long term disability insurance policy is your protection of a permanent or very long disability. When a person gets hurt on the job, there are other compensations that will help them in the long term. But, consider what happens if you suffer a disability at home? Or a disability when you are on vacation?

Long Term Disability Insurance Benefits
Insurance policies have several benefits that make them an attractive item. These benefits are there to provide you with protection in the event that something goes wrong - an accident, medical problem, loss of job, house fire, or theft. A long term disability insurance policy also has some great benefits that are worth knowing about.

1. Replacement of Income
If you have suffered a long term disability, then you will probably be out of work. With a disability insurance policy, you are protected by having at least 80% of your income replaced for you. This can be paid out for a period of 10 years or until age 65.

2. Guaranteed Renewal
Some long term disability insurance policies are a guaranteed renewal. This means that the insurance company can not drop your policy unless you have skipped premium payments. There is also another type of guaranteed renewal called non-cancelable policies. With this type of policy the insurance company can not raise your premium as long as you own the policy.

3. Cost of Living Option
With long term disability insurance policies there are certain riders that can be attached to the policy. One of the riders is a cost of living rider. This is very helpful in the event that inflation rises out of control. Your policy benefits will also increase along with the inflations.

4. Residual Benefits Rider
Another very helpful rider that you can apply to your policy is a residual income rider. In the event that the policy holder finds a new job, this option will kick in if the new job does not match the previous jobs salary. You will receive the difference between the two salaries so there is no loss in income.

5. Own Occupation
Home long term disability policies can be designated as an "any occupation" policy. This would mean that as long as the policy holder can get any type of work, they must take it no matter what it is. An "own occupation" policy is when the policy holder can wait until he can return to their previous occupation without any problems.

Long Term Disability Insurance Is Not Social Security
It is important to note that a long term disability insurance policy is not a social security benefit. In most cases, social security is not available, and should be a last resort when out of work. Many are denied benefits because the injury is not a permanent disability.

blog comments powered by Disqus