Life is filled with the unexpected, every one of us is at risk of an illness or injury, leading to disability, illness or injury even dread disease. Unfortunately the unforeseen is part and parcel of modern life.
The statistics relating to injury, illness, sickness, and death caused by chronic conditions make for grim reading. For instance, according to the CDC, around 136 million people are admitted to emergency rooms each year. Many are injured in workplace accidents, some are simply unlucky.
Cancer takes a portion of its toll as well. The American Cancer Society estimates that around 1.9 million people in the United States will be diagnosed with Cancer in 2023.
These figures only hint at how every one of us can become victims of the unexpected, one of the reasons that long-term insurance is an absolute necessity.
What is Long-Term Disability Insurance?
The major difference between long-term insurance and short-term insurance is fairly straightforward. Short-term insurance typically covers loss of income, and damage to assets – things like your car or home, or a portion of your belongings.
Long-term insurance covers something even more valuable, your life and your ability to earn an income. If you are disabled while fulfilling your work responsibilities long-term disability (LTD) insurance paid for can mean the complete difference between struggling financially and being able or unable to work and afford to maintain your current lifestyle. It can also make long-term medical care much more affordable.
There are various types of long-term insurance. These include funeral cover and life insurance. However, we will be taking a closer look at long-term insurance options that include disability coverage and income protection.
Another difference between short and long-term insurance is that short-term insurance is most often renewed every year, and long-term insurance is taken out throughout age a far longer period. That period can typically range in a period of age from 20 – 30 years.
Your payments toward long-term insurance coverage from employers will typically only come to an end when you pass away, or when you retire.
The Difference between LTD Insurance and Workers Compensation
Both disability insurance and workers’ compensation can make an enormous difference to those employees who claim to have been injured on the job. This is especially true if that injury requires long periods of specialized care or hospitalization.
Having access to the funds made available through workers’ compensation and long-term insurance coverage will allow for medical expenses to be covered and for the patient to enjoy a better quality of life, and avoid the stress of added financial strain.
However, there are differences between workers’ compensation in long-term disability insurance, and those seeking long-term coverage must be aware of these differences.
Put simply, workers’ comp will provide coverage pay benefits to those who suffer job-related injuries or illnesses during employment. Disability insurance will cover qualifying medical conditions that might otherwise prevent the employer or the worker from earning an income.
Workers’ compensation will provide the employer with funds for medical treatment and relief in the form of benefits payable for ‘temporary total or partial disability.’ The medical coverage to which employees receive disability benefits can include surgical procedures, physical therapy, pharmaceutical prescriptions, and hospitalization/
However, it is important to note that workers’ compensation benefits will typically only provide up to 2/3 of a worker’s usual salary or wages. The amount of pay that can be paid out is subject to a various percentage and federal cap.
Another important distinction to draw between long-term disability insurance and workers’ compensation is that workers’ compensation will cover the cost to the worker for only a set period. When an injury to a specific body part is involved, the maximum benefit period of workers’ compensation may last for the same period or duration of waiting period as the injury to the affected part of the body.
However, the major difference between workers’ compensation and long-term disability insurance is that workers’ compensation only covers conditions that occur as a direct result of work-related activities.
“Long” long-term disability and benefits full-term long term disability and insurance on the other hand will cover illnesses and injuries, irrespective of whether they are a result of a workplace accident or strike at any point during the individual’s day-to-day life.
Do I Need Long-Term Disability Insurance?
There is no doubt that insurance as a general rule is viewed by most people as a grudge purchase. It is simply an annoying expense that is incurred at regular intervals. The benefits are not always immediately apparent.
But when things do go wrong, long-term disability insurance will be invaluable. We cannot foresee the unexpected, but we can plan for it. For many people, relying exclusively on workman’s compensation has turned out to be short-sighted. An injury or illness can have a severe financial impact on the individual – and those closest to them.
When all is said and done, long-term disability insurance is a prudent investment that can help those who have been injured or fallen ill, and who see their income dwindle as a result.
If you are interested in making long-term insurance part of your financial planning contact Ascend Disability on (855) 445-9787, and enjoy peace of mind.
