A surprisingly large number of workers will miss extended time at work due to a long-term illness or injury. Going months, or even years, without one’s normal income can be a frightening prospect, even for the fiscally responsible who have established a significant emergency fund.
Generally, long term disability policies will pay 40% – 60% of your income. Coverage will vary, based on your occupation, and the benefits you select. Occupations with higher probability of physical injury cause coverage to be more expensive than for those professions with less exposure to dangerous situations.
Each company defines “disability” uniquely, and there can be a wide variance between companies and policies. Some definitions are more flexible—or rigid—than others, dramatically impacting benefits you receive, so it’s important that you obtain your policy from an advisor that can walk you through the descriptions and the implications for your situation.