Young people generally don’t think of themselves as becoming disabled, but accidents, illnesses, and injuries don’t discriminate by age. Anyone can suffer a long-term disability at any time, which is why having a Long-Term Disability (LTD) plan is so important.
If you are no longer able to work, how will you support yourself? If you are married or have children, how will you support them? The company you work for may have an LTD plan in place, but it may not be enough. Often, employer plans cover a limited portion of your salary and may not factor in bonuses that you rely on to pay your bills.
The time to worry about how you will pay your bills if you become disabled isn’t after you become disabled. It’s now. Simply put, if you have a job, you most likely need disability insurance. Consider this:
- Over 39 million Americans are disabled; about 52% of them are ages 18-64.1
- The average individual disability claim lasts 31.6 months.2
- More than 1 in 4 of today’s 20-year-olds will be out of work for at least a year due to a disability before they reach retirement age.3
How can an LTD plan help?
An LTD plan is designed to help you financially. If you suddenly become disabled and are no longer able to work to support yourself or family, your coverage will kick in. The plan can help you pay medical co-pays, mortgage, rent, credit card bills, utilities, loans, and other everyday expenses.
So how do you choose the right plan for you and your family? You should consider a plan that provides flexibility with options that best suit your needs. Look for a plan with these features:
- Total and Partial Disability options
- Coverage you can take with you, even if you change jobs
- A “your occupation” definition of disability, so you won’t be forced into another line of work before receiving benefits
- Benefit amounts that will suit your needs
- Income tax-free benefits (because you pay the premiums with after-tax dollars)
- Choice of waiting periods
- Cost of living adjustment feature
- Rehabilitation program
- Lifetime benefits
Hopefully, you will never have to reap the benefits of a long-term disability plan, but if you do, you’ll be glad you have one. Your life can change forever in the blink of an eye. Being prepared can make all the difference in the world.
As a valuable benefit of your membership, the Texas Bar Private Insurance Exchange offers affordable LTD coverage.
If you are interested in learning more about this product, please feel free to contact us with any questions you may have. Our team of Benefits Counselors is standing by to help guide you to a plan that best suits your unique needs.
1 U.S. Census Bureau, 2014 American Community Survey.
2 Council for Disability Awareness, Disability Statistics, March 2018.
3 Social Security Administration, Disability and Death Probability Tables for Insured Workers Born in 1997, Table A, October 2017.
North Carolina Residents: THIS IS NOT A MEDICARE SUPPLEMENT PLAN. If you are eligible for Medicare, review the Guide to Health Insurance for People with Medicare, which is available from the company.
This policy provides disability income insurance only. It does NOT provide basic hospital, basic medical or major medical insurance as defined by the New York Department of Financial Services.
Coverage under the Long-Term Disability Insurance Plan is issued by The Prudential Insurance Company of America, Newark, NJ. Plan details, limitations, and exclusions are described in your certificate. CA COA# 1179, NAIC 68241. Contract Series: 83500.