| Long term disability insurance can be vitally | | | | The benefits that you receive if you become |
| important to those people who want to protect | | | | disabled will be tax-free, as long as you paid the |
| themselves against the loss of future earnings. | | | | insurance premiums with after-tax money. |
| Disability insurance, in general, is used when a | | | | Another benefit to having private coverage is |
| person is no longer able to work and to earn a | | | | that the coverage is not bound to your job. In |
| living. The benefits received from disability | | | | other words, if you change jobs your coverage |
| insurance can help pay mortgage bills, living | | | | does not end as would be the case with most |
| expenses, medical expenses, etc. In many ways, | | | | group coverage policies. |
| it can be the difference between maintaining a | | | | If your occupation allows for exceptionally high |
| lifestyle and facing a lifetime of uncertainty. | | | | earnings you may need to purchase a special |
| There are two types of long term disability | | | | type of private long term disability insurance that |
| insurance. There are those policies that are | | | | will lock in that level of earning should you become |
| considered "group" policies. These are usually | | | | disabled. Most group policies use what is known as |
| bought through the workplace or through | | | | the "any-occupation" scheme which allows for the |
| participation in certain organizations. The other | | | | less expensive premiums, but also provides a |
| type is "private". Private long term disability | | | | lower amount of benefits. High earners need to |
| insurance is purchased by the individual and is | | | | take this into consideration when thinking of long |
| usually more expensive than policies purchased | | | | term disability insurance. |
| through group policies. | | | | There are some important things to look for in |
| There are also those group policies that allow | | | | private disability insurance: You want a policy that |
| participants to add more coverage to an individual | | | | is "non-cancellable". This guarantees that premiums |
| policy as long as the person is willing to make the | | | | will not be changed as long as you pay them on |
| added payment himself. For those who have | | | | time and in full. You also want to look for a policy |
| group coverage this can be a good way to get | | | | that is to age 65. |
| added protection at discounted prices. | | | | You want to avoid policies that are termed as |
| In the area of private long term disability | | | | "accident only". These polices will not pay if you |
| insurance the first thing to understand is that this | | | | become disabled through illness rather than injury, |
| type of insurance can be expensive. It is almost | | | | and some of the accident conditions can be hard |
| certainly going to be more expensive than life | | | | to meet. |
| insurance. However, this type of protection is | | | | There are a number of riders that can be bought |
| actually more valuable than life insurance in many | | | | with most private long term disability insurance |
| ways. Its main value is that it allows you to | | | | and you should go through those carefully as |
| maintain a close semblance of your lifestyle should | | | | some of them can be very important. Most riders |
| you be forced out of work due to illness or injury. | | | | will cost a bit more to implement into the policy |
| There are some advantages to having private | | | | but they can be worthwhile should you ever need |
| long term disability insurance as well. | | | | to use them. |