Long term Disability Insurance (LTD) is insurance coverage that protects your income in the event you become disabled because of an accident or illness and are unable to work. Disability insurance will pay your benefits, even if you receive workers’ compensation, which only pays if you are injured at work.
Although many employers offer short-term disability insurance, fewer offer long-term coverage and often the LTD policies offered by an employer do not provide the coverage that individual LTD policies will provide. In almost every case, the major long-term disability insurers also offer a wide range of riders that can be used to broaden your coverage and to design a plan specific to your needs and your monthly budget.
Long-Term Disability Insurance is especially important for individuals who are self-employed and do not have access to group coverage. Think about how financially devastating it would be for you or your family if you were to become disabled for a year or more and unable to work and earn an income. This is when long-term disability insurance can save the day.
In today’s economy, very few individuals or families have the resources they could draw on if the primary earner were to lose their income for a month or more, much less a year or more. In fact, according to the Council for Disability Awareness, only about 48% of adults in the U.S. indicate they have saved enough to pay three months of living expenses (rent, house payment, groceries, auto payment, etc) if they became injured or ill and were unable work and earn a living. Even more disturbing is that about half of the adults in the U.S. indicate that they would not be able to cover an unexpected bill for $400 unless they used a credit card or borrowed the money.
Regretfully, even though you are probably paying into Social Security, getting your case approved and getting benefits can easily take more than three months (or much longer, in most cases) if it is approved at all. And it’s important to note that Social Security Disability is based on “any occupation” not “own occupation.” This simply means that if you can do any work at all, you’ll likely not qualify for Social Security Disability benefits.
Although there are many insurance carriers that offer long-term disability insurance, MassMutual is one of the few carriers that stands out as among the best. The company continually earns top ratings from the insurance rating services and has established itself as one of the premier long-term disability insurance providers.
The company not only offers some of the finest insurance products available, they are also a leader in providing information about each type and whether your need is sufficient to justify your purchase. Even if your employer provides disability coverage, it’ll likely fall short of your specific needs if the worst happens and you are out of work for years rather than weeks.
Certainly, every policyholder wants to have peace of mind knowing that their premiums are supporting a policy that is provided by a company who has consistently ranked very high with rating services and indicate that the company can meet all its obligations in the long term.
MassMutual continues to earn exceptional ratings year after year:
A.M. Best Company |
A++ |
Fitch Ratings |
AA+ |
Moody’s Investors Service |
Aa2 |
Standard and Poor’s |
AA+ |
Unless you have experience in purchasing long-term disability insurance, you’ll need to understand the most important factors and what to look for when you decide to purchase coverage.
This is determined by the type of coverage you purchase. We always recommend accepting “own occupation” coverage only. This means that the insurer will consider you disabled when you are unable to perform the tasks required for your own occupation, not any just any occupation.
Once you’ve filed a claim and have satisfied the definition of disability stated in your policy, your benefits will begin once you have exhausted the waiting period (elimination period) that you select when you purchase your policy. Certainly, a shorter waiting period is preferred by most applicants but the longer the waiting period, the lower your premium. Your financial situation will certainly have the greatest impact on the elimination period you choose.
When you begin working with your insurance broker, your broker will explain the different benefit periods and how each will affect your monthly premium. Typically you’ll have a choice of 2 years, 5 years, and age 65 or age 67. The shorter the benefit period, the lower your monthly premium will be. Your monthly benefit will be paid up to the benefit period you selected as long as you remain disabled.
The amount of insurance you should purchase is typically based on your monthly household expenses but many applicants will ask for the maximum benefit which is usually about somewhere between 50% and 60% of your income.
We recommend to every applicant that they demand the following things in their policy:
Finally, before you decide, take a look at the Disability Insurance Education Page at Protect Your Income.com. This page contains the relevant information that can help you get a better understanding of long-term disability insurance and why you seriously consider purchasing it.
For more information about long-term disability insurance from MassMutual, and how you can protect your income, call the disability professionals at LifeInsure at (866) 868-0099 during normal business hours, or contact us through our website at your convenience.
The cost of long-term disability insurance depends on several factors, including your age, health, occupation, and desired coverage amount. MassMutual provides personalized quotes based on individual circumstances to help you understand the cost of coverage.
Mass Mutual’s long-term disability insurance offers features such as flexible benefit periods, own occupation coverage, partial disability benefits, and an option for cost-of-living adjustments. The policy aims to provide comprehensive and customizable coverage to suit your needs.
Long-term disability insurance is a type of coverage that provides income replacement if you become disabled and are unable to work for an extended period. It helps protect your financial stability by replacing a portion of your income when you can’t earn it due to a disability.
Yes, MassMutual offers the option to customize your long-term disability insurance coverage. You can select benefit periods, elimination periods, benefit amounts, and additional features to align the policy with your specific needs and budget.
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