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Why should I opt for long-term disability insurance?

by | Jan 2, 2021 | Long-Term Disability |

When you start a new job in Pennsylvania, you will likely sit down with someone from human resources who will explain a plethora of benefits available to you. While you may see the need for medical benefits or life insurance, one benefit you may decide to opt out of is long-term disability insurance, especially if you are young and in good health. However, any one of any age should consider how having a long-term disability insurance policy would benefit them.

How many people really opt for long-term disability insurance?

According to a 2017 survey, while 65% of respondents stated that most people need disability insurance, only 48% of respondents believed that they themselves personally needed it. Moreover, only 20% of respondents reported that they actually had disability insurance policies. However, a serious illness or injury can befall anyone of any age, causing them to have to miss work for weeks, months or more. Most people do not have enough in savings to cover even a $400 medical expense. Thus, it is important that workers choose to have long-term disability insurance.

How does long-term disability insurance work?

Long-term disability insurance is meant to cover at least some of a worker’s expenses should they become disabled and are unable to work. Usually, a worker must wait three to six months before their long-term disability benefits will begin. During that waiting period, a worker’s expenses may be covered by short-term disability benefits, if they have them. Typically, long-term disability insurance will cover 50% to 60% of the worker’s income when they cannot work due to an illness or injury. How long the policy will continue paying benefits varies. Some issue payments until the worker is age 65 or goes back to the workplace, whichever occurs first. On average, the duration of a long-term disability insurance claim is almost three years.

Learn more about long-term disability insurance

As this shows, it is important to strongly consider opting into a long-term disability insurance policy. However, sometimes issues come up regarding the nonpayment of benefits when benefits are due. In such situations, it is important for workers to understand their rights and options. Our firm’s webpage on long-term disability insurance may be of interest to those who want to learn more about this topic.