Long-term disability coverage is disability insurance that pays a portion of your lost wages if you’re injured or become ill and can no longer do your job. Long-term disability payments may be available for many years—for example, five or 10 years—depending on the policy.
If you’re buying an individual disability insurance policy (as opposed to one through a workplace), you’ll choose the benefit length, which is the number of years that you can receive benefit payments or the age limit for coverage, such as coverage to age 65.
Long-term disability insurance is a benefit often offered by employers, but you can also buy an individual disability insurance policy on your own. That’s different from short-term disability insurance, which is typically only offered by employers and is for a smaller period if you become disabled. It’s much more difficult to find a short-term policy on your own compared to a long-term disability policy.
It’s much more difficult to find a short-term policy on your own compared to a long-term disability policy.
Long-term disability insurance is also different from Social Security Disability Insurance (SSDI). SSDI, often referred to as “going on disability,” is offered through the government if you can’t work and you’ve contributed to Social Security.
Total vs. Partial Long-Term Disability Insurance
Total long-term disability insurance pays you if you can’t work at all regardless of the job because of an injury or illness. Partial long-term disability pays you if you’re able to work but not at your previously full ability.
