What is Long-term Disability?
Disability refers to the inability to perform normal tasks and activities. In the working environment, it means that one is not able to perform his/her duties or functions as an employee. This disability may be a result of an illness or injury and may be long-term or short-term. Short-term disabilities are those limitations in the performance of duties that are said to be temporary; meaning the person involved is expected to be able to go back to work in about 3 to 6 months in most cases. Long-term disability meanwhile pertains to the inability to work for longer periods, which may also be permanent.
Some companies may offer insurance benefits to its employees including coverage for short-term or long-term disabilities. For those employed with companies that do not have this kind of benefit, they usually seek out other insurance providers for this purpose. For many, this benefit or insurance coverage is very important since nobody is certain if at some point in their lives, they will be confronted with a debilitating illness or maybe injured from an accident.
Payment for long-term disability insurance coverage may be made by companies, by the employees themselves, or may be shared between the two parties. In most insurance plans, when an employee avails of this benefit, 50-70% of his/her salary may be given out each month. Most plans also have specific time frames on up to when an employee can receive the benefit. Some plans have a maximum of 5 to 10 years, while other plans are active up to the age of 65.
Not all employees may be covered under the long-term disability plan of a particular company. Usually there is a requirement in terms of the number of hours worked for a particular employee to avail this benefit. Some also require that only full-time employees may be covered under this plan. For those who do not have any coverage for disabilities with their current employer, they may seek external insurance providers with varying coverage and rates.