It is estimated that 3 out of every 10 Employees between the ages of 25 and 65 will experience an accident or illness that keeps them out of work for 3 months or longer. Almost 60% of these injuries occur off the job, and are not covered by Workers Compensation. When an employee cannot work for an extended period of time, a Long Term Disability Plan can help cover a portion of the employee’s salary. Long term disability usually kicks in after a pre-determined Waiting Period, often 90 to 180 days.
Employers can choose how much coverage to elect for their employees. Most plans cover 50-70% of the Employee’s Monthly Salary. The duration of plan benefits can also extend for awhile. Some plans only pay out 5-10 years worth of Disability to anyone qualified, while others will pay out till age 65.
Depending on plan terms, a person on Disability may be limited to how much coverage they receive, and will have to choose another career for which they are suited, in education or training. Another option, usually reserved for highly skilled workers or upper management, is a long term disability contract that allows a person with Disability to receive benefits for the lifetime of the coverage, without switching professions.
It doesn’t happen often, but when someone is too sick or injured to work for an extended period of time, it’s a wonderful to have the ability to make sure that they are taken care of.