Long-term disability insurance policies can pay out for two, five, or ten years—or until retirement. A five-year benefit period is typically enough to cover the most common disabilities. According to the Council for Disability Awareness, the average individual disability claim lasts for just under three years.

Disability insurance policies are designed to partially replace your employees’ income if they become disabled and can’t continue to work. To help limit the number of fraudulent disability claims, insurers typically will not cover 100% of lost income. Most group disability insurance policies will cover only up to 60% of the insured’s earned income.

Every plan has its definition of disability. We can help you review which types qualify in your particular policy.

Typically, many policies do not provide coverage for the following:

• Injuries or disability sustained in riots or war
• Injuries that are intentional and self-inflicted
• Disability incurred during incarceration or while committing a crime
• Pre-existing conditions (definition varies by policy)
• For short-term disability: occupational sickness or injury (as workers’ compensation policies generally cover these types of disabilities)

Short-Term Disability Insurance 

An accident or illness that leads to disability can cause significant financial hardship. Short-term disability insurance can help your employees continue to provide for their families if they are unable to work due to disability. Requirements for how much income short-term disability insurance replaces, and for how long varies by state. Our employee benefits and insurance specialists can help you understand regulations governing short-term disability insurance and your options for providing additional levels of coverage.

Long-Term Disability Insurance

Unfortunately, short-term disability coverage may run out before your employee can return to work. An employee who remains disabled after six months may be left without any source of income, unable to provide for their family and facing potential financial ruin. Long-term policies can provide the help you or your employees may need to continue their road to recovery.