Long-Term Disability Insurance
Insurance — typically employer-sponsored — that replaces a portion of your income (usually 50%–70%) if you become unable to work for an extended period, beginning after a 90- to 180-day elimination period.
Employer-sponsored LTD: premium often paid by employer; benefits may be taxable if employer paid premiums. Individual LTD policies: purchased privately; benefits are generally tax-free if you paid premiums with after-tax dollars.
→ LTD is separate from SSDI — many policies require you to apply for SSDI as well.
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Frequently asked questions about Long-Term Disability Insurance
What is Long-Term Disability Insurance?+
Long-Term Disability Insurance, or "LTD," is a plan that helps you if you get sick or hurt and can't work for a long time. It usually pays you a part of your normal income, like half or a little more. You need to be unable to work for a few months before the payments start.
Who can get Long-Term Disability Insurance?+
Many people get Long-Term Disability Insurance through their job. Some companies offer it as a benefit to their workers. You might also be able to buy a plan on your own if your job doesn't offer it. Each plan has its own rules about who can get it and when.
How do I get Long-Term Disability Insurance?+
If your job offers Long-Term Disability Insurance, you usually sign up for it when you start working or during an open enrollment period. If you want to buy it yourself, you would contact an insurance company. They will ask you some questions about your health and job.
How much does Long-Term Disability Insurance pay?+
Long-Term Disability Insurance usually pays you a percentage of your regular paycheck. This is often between 50% and 70% of what you earned before you couldn't work. The exact amount depends on your specific insurance plan and how much you made at your job.