Long-term disability insurance (LTDI) helps replace income that’s lost when a person is unable to work due to an injury or illness; it’s a particularly important consideration as it’s predicted that one in four 20-year-old Americans will suffer a disability before they reach the age of 67, according to the Social Security Administration. These policies typically cover between 50% and 70% of a person’s salary and the cost is calculated based on factors such as the individual’s health, job risk, and age, with women often charged higher premiums.

Although LTDI can be more expensive than short-term disability insurance, it also offers benefits over a much longer period. To balance cost and coverage, individuals can select elimination periods of usually 30, 60, or 90 days during which they will wait after their injury to start receiving payouts. It’s worth noting, the shorter the elimination period, the more expensive the premium.

Two primary definitions of disability exist within disability insurance: any occupation and own occupation. Any occupation covers a policyholder only if they’re completely unable to perform any job for which they’ve been reasonably educated and trained. Own occupation coverage, on the other hand, applies even if the injury allows the policyholder to work in a field other than their original one.

Optional riders or amendments can further tailor a disability policy, one of which is a non-cancelable policy that assures your insurer cannot cancel or refuse your policy renewal as long as payments are met on time. Another is a cost-of-living increase to help benefits keep up with inflation.

Importantly, choosing the right LTDI coverage for your circumstances is about striking a balance between the depth of coverage and its affordability. To make LTDI more cost-effective, consider waiting for a longer elimination period, limiting the duration of the benefits, and maintaining a healthy lifestyle. Furthermore, many employers offer LTDI in their benefits packages, and some insurance providers may offer discounts for bundling policies.

If you are in need of reaching out to apply for or discuss LTDI, you may also want to consider seeking help from platforms like eddcaller.com. This service can make it easier for you to connect with the relevant departments for long-term disability, Paid Family Leave (PFL), and State Disability Insurance (SDI). They provide reliable information on how to contact these services which can be a great aid in navigating complex processes related to insurance and benefits.