Long Term Disability Insurance
Long term disability insurance or LTD), we have found, is of critical 
importance to your financial well being. Look at it from the stand point of your personal income. If you were to loose your job tomorrow, I am sure that this would have a major impact on life and the lives of other people who depend on you. The negative results can be the same if you become disabled for a long period of time except worse. Look at it this way, if you do not have in place a long term disability insurance policy, not only will your income mostly disappear, but your expenses will also go up due to the fact that your disability itself will increase expenses.
Which options available with long term disability insurance policies?
In many cases, individuals will look for long term disability insurance and select a rather short benefit period. The most popular seems to be 2 years. What the benefit period simply, is the amount time the insurance company as agreed to pay you a covered benefits amount (after a waiting period - more on that later). In most cases of long term disabilities, two years of benefits is very too short and simply not enough. We highly recommend, if you can afford it, that you select at least a10 year benefit period or even a benefit period to age 67. For some people in higher risk occupations that may not be possible but you still want to opt for the longest period possible.
Another aspect of a long term disability insurance policies is the waiting period. That simply is the amount of time you need to wait before covered benefits start to be paid to you. In other words, if you have selected a 90 day waiting period, then from the time that your covered disability has started, you need to wait 90 days before benefits are paid to you. we rarely recommend 30 and 60 days waiting periods. Why? simply because it raises the cost of the policy to often unaffordable rates and people will tend to forgo more important longer benefit periods.
What we have seen happen is that people select a 30 day waiting period and a 1 year benefit period. They probably would select a longer benefit period but the fact that they selected a 30 day waiting period has made the cost very high already. These same people, would better off getting a 90 day waiting period and 10 year benefit period for about the same price as a 30 day/1 year. The fact is, you are more likely to loose all of your assets (and some) because of a long term disability (10 years) than a shorter term disability (1 year). It is best to focus on the benefit period rather the the waiting period.
Which Companies are Best for Long Term Disability Insurance?
Well, we could easily name a few but that would really not help much. The bottom line is how well is the company rated (AM Best Rating) and the quality of the disability insurance plan they offer. Read disability insurance proposals very carefully before you apply and read even more carefully your approved disability insurance policy. If there is ANYTHING in the policy that you do not understand or dislike, ask questions and request that corrections be made right away. Corrections should preferably be de during the free look period. We hope this gave you a better understanding of long term disability insurance. Feel free to e-mail us questions. Never an obligation to buy anything!
