Long Term Disability

Long-Term Disability (LTD) insurance is designed to protect your income if you become unable
to work due to a serious illness or injury. While many people rely on short-term disability
coverage for temporary situations, LTD provides ongoing financial support when a condition
prevents you from working for an extended period—often lasting several years or until
retirement age. This coverage typically replaces a portion of your income, helping you maintain
financial stability and meet essential expenses such as housing, utilities, and daily living costs.
LTD policies generally begin after a waiting period (also known as an elimination period), which
can range from a few months to longer depending on the plan design. Benefits are usually paid as
a percentage of your pre-disability earnings and may be structured as either “own occupation”
coverage—paying benefits if you cannot perform your specific job—or “any occupation”
coverage, which requires that you are unable to work in any reasonable occupation based on your
education and experience. Understanding these distinctions is key when selecting the right
policy.

Having long-term disability coverage is an important part of a comprehensive financial
protection strategy, especially for individuals who rely heavily on their income. Without it, a
prolonged disability could significantly impact your financial well-being. By securing LTD
insurance, you create a safety net that allows you to focus on recovery while preserving your
financial independence.