Long Term Disability Insurance

Most people know they need life insurance, homeowners insurance and auto insurance.  While these types of insurance are very important, this does not mean that you are completely covered.  One of the other types of insurance that people forget is Long-Term Disability Insurance (LTD).

More than one in four of today’s 20-year-olds can expect to be out of work for at least a year because of a disabling condition before they reach the normal retirement age.  Read that again. Yes, 25% of people who are only 20 years old will experience some type of disability that will put them out of work for at least one year before they retire.  Long-Term Disability insurance is so important!

If I were to become disabled and lost the ability to speak, write, or perform the duties of my work, I would also lose my ability to produce an income by working.  However, that does not mean that life stops costing money. I would somehow need to generate an income which will continue paying for ongoing expenses. LTD insurance helps me to transfer this risk.  If I were to become disabled, LTD insurance would pay for 50 to 60 percent of my income until I am able to go back to work.

I prefer same skill disability insurance.  If I were to lose my voice and was unable to fully recover my ability to speak and teach, I would not be able to do what I was created to do.  I want insurance that will pay if I am unable to do that kind of work, not stop paying just because I am able to walk around again. In the insurance world, they call my preferred LTD policy “Own Occupation” insurance.  The type I do not want is “Any Occupation.”

Long-Term Disability Insurance Tips:

  • Ensure you clearly understand the policy
  • Obtain this insurance – Do not allow a gap in coverage
  • Make certain you obtain “Own Occupation”
  • Ensure any LTD policy provided via your employer is portable – that it can be taken with you should you no longer be an employee of that company


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