Disability
Short-term and long-term disability coverage that replaces a portion of income if you cannot work because of illness or injury.
Life insurance pays if you die. Disability insurance pays if you are alive and cannot work. For many people in their 30s and 40s, that is the larger financial risk.
Short-term disability (STD) covers a weeks-to-months gap, often until long-term disability starts. Long-term disability (LTD) is the policy that can pay for years — sometimes to retirement age — if you meet the definition of disability. Own-occupation versus any-occupation language is the clause that decides claims. Benefit amount, elimination period, and whether the policy is individual or group all change the outcome. Employer group LTD is a start. It is often capped, taxable if the employer paid the premium, and not portable if you leave. We quote individual disability for professionals and owners who cannot live on the group benefit, and we look at business overhead or disability buy-out when a firm would stall if an owner could not work.
Who this is for
What it typically covers
A simple example
A surgeon injures a hand and cannot operate for 18 months. Own-occupation LTD is designed to pay even if they could work in another job. A weak any-occupation definition might not.
Good to know
Coverage, eligibility, premiums, and underwriting vary by age, health, state, and carrier. Illustrations are not guarantees. This is not tax, legal, or investment advice.
Guides
Guide
A cheap 20-year death benefit, a policy that lasts a lifetime, or a flexible UL/IUL design. Which job you are actually hiring.
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