Things to Know About Long-Term Disability in Massachusetts

You May Think You Don't Need Long-Term Disability Insurance

You may thing you don't need both short and long-term disability insurance. You might think a serious illness or injury that keeps your from working won't happen to you. There's no way to know that this is the case. You should be prepared.

What is Long-Term Disability?

If you have been injured at work, you may be eligible for long-term disability insurance. Unlike workers' compensation benefits, these benefits must be offered by your employer, and not all employers offer the same plan. For those who are self-employed, it may be a good idea to buy LTD coverage in case you are hurt during the course of a job.

Understanding the Benefits of Long-Term Disability Insurance

Long-term disability provides protection for employees who are disabled and can no longer work. Reasons for disabilities may include injury, mental health issues or major illnesses. Long-term disability gives workers a way to continue to cover their financial obligations even when they are not earning a salary.

Most employees will purchase long-term disability insurance through their employer. There are different plans that an employee can purchase, and they usually come bundled as a part of a comprehensive benefits package. If companies do not offer long-term disability insurance, or if an employee feels that the insurance offered is not sufficient to cover their needs, they have the option of purchasing individual long-term disability plans from insurance agents. In many cases, this insurance is expensive.

Long-term disability insurance is designed to work once short-term disability insurance has run its course. In most cases, short-term disability insurance is designed to last between 3 to 6 months. Typically, long-term disability insurance will pay an employee between 50 to 70 percent of their salary. Some long-term policies are designed to provide protection for a set period of time, usually from between 2 to 10 years.

All long-term disability insurance policies have set conditions for payout. Certain diseases as well as pre-existing conditions may be excluded from the policy, and there may be other stipulations that minimize the usefulness of a particular policy for an employee. For this reason it is essential that employees do their research when finding a policy that is right for them.