No one wants to think about the possibility of incurring and suffering a long term disability. Sadly, the truth is that every American faces a 20% chance of becoming disabled at some time. Even worse is the fact that the average long term disability lasts 2 and one half years. It is frightening for most Americans to think about the possibility of surviving for that long without a steady paycheck.
American workers generally have a couple of options to help them weather a financial storm brought about by a long term disability. Sick leave, when it is available, is often for a limited duration. A number of employers provide short term and long term disability insurance programs for their workers. Short term disability generally lasts no more than three to six months. After that, without the benefit of a long term disability plan, ill or injured workers may face financial devastation.
With a long term disability insurance plan, disabled workers can generally receive 50 to 60 percent of their weekly income for up to five years. Most plans cease when disabled workers return to regular employment or reach the age of 65. Specific terms may vary from plan to plan.
The majority of disability plans are purchased through employer programs. However, there are a number of individual plans available from other sources. Financial planners, independent insurance agents, and even mortgage companies may offer plans for individual insurance coverage.
It is important to understand the extent of coverage provided by the policy. While some policies pay benefits only when workers are unable to perform the duties of their normal occupation, others will pay benefits only when workers cannot work in any job at all. Some disability policies require that workers be totally disabled before payments commence. Certain insurance policies pay for partial disability, but only when the partial disability follows a total disability as a result of the same cause. A number of policies will pay a proportionate amount when employees are able to perform only a portion of their pre-disability duties.
Most long term disability claims are for musculoskeletal and connective tissue injuries. Back and neck pain top the list of injuries. Injuries to knees and hands are the next most common injuries. Cancer is the most common form of illness for which workers claim long term disability benefits. Few policies limit the causes of the disability.
The cost of long term disability insurance plans is affordable for most workers. The prospect of a long term disability can be overwhelming on a number of levels. The most important thing to consider is the health and recovery of the disabled worker. Getting well without financial worry is also important. This low cost insurance can allow injured workers to heal, convalesce, and rehabilitate without worrying about the loss of income. Not many American workers have enough savings amassed to see their families through a prolonged illness or injury. Long term disability insurance can provide the financial resources necessary to maintain a family’s financial well-being. Without a steady income, families may face financial hardship or even ruin. The low cost of disability insurance is an investment every American worker should make.