Life is filled with the unexpected, each and every one of us is at risk of injury leading to disability, or even dread disease. Unfortunately the unforeseen is part and parcel of modern life.
The statistics relating to injury 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 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 each and 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 and damage to assets – things like your car or home, or 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 can mean the difference between struggling financially and being able to 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 cover 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 over a far longer period. That period can typically range from 20 – 30 years.
In fact your payments toward long-term insurance coverage will typically only come to an end when you pass away, or alternatively, when you retire.
The Difference between LTD Insurance and Workers Compensation
Both long-term disability insurance and workers’ compensation can make an enormous difference to those who 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 it is vital that those seeking long-term coverage be aware of these differences.
Put simply, workers’ comp will provide coverage to those who suffer job-related injuries or illnesses. Disability insurance will cover qualifying medical conditions that might otherwise prevent the worker from earning an income.
Workers’ compensation will provide funds for medical treatment and relief in the form of ‘temporary total or partial disability.’ The medical coverage can include surgical procedures, physical therapy, pharmaceutical prescriptions, and hospitalization/
However, it is important to note that workers’ compensation will typically only provide up to 2/3 of a worker’s usual salary or wages. The amount that can be paid out is subject to a federal cap.
Another important distinction to draw between long-term disability insurance and workers’ compensation is that workers’ compensation will cover the worker for only a set period of time. When an injury to a specific body part is involved, workers’ compensation may last for the duration of 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-term disability 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.
