Injuries like those that occur in a fall, a car accident or a work accident or even a sudden chronic severe medical condition can prevent a person from returning to work full-time. Private long-term disability insurance can offset this loss of income.
According to the Council for Disability Awareness, as many as one in four 20 -year -olds today will find themselves unable to work for as long as a year because of a disability before they reach retirement age. Long term disability insurance is private insurance that compensates for the loss of income that due to a disabling condition.
Most American workers are not equipped for this kind of financial hardship. In fact, less than half of all American workers have three months worth of income saved to sbustitute for the loss of income in the case of a sudden illness or injury. Short term and long term disability insurance can be used to offset the income loss for such persons.
Long term disability insurance is in addition to Social Security Disability Insurance that a person earns by paying into the Social Security Disability program through payment of FICA payroll taxes. Typically, long-term disability insurance providers will require that you apply for Social Security Disability Insurance in addition to collecting private disability benefits. These insurance providers usually off-set the amount they are required to pay beneficiaries with amounts received in Social Security disability benefits. In essence, you can collect both, but they do not typically stack one atop the other in terms of payment.