Other Information

Types of LTD insurance

There are two major types of individual long-term disability insurance:

  1. Non-cancelable: under a non-cancelable policy, you have the extra security that premiums can never be raised above those shown in the policy. Also, the policy can not be cancelled as long as the required premiums are paid on time.
  2. Guaranteed renewable: with a guaranteed renewable policy, the premiums can be raised, but only if the change affects an entire class of policyholders. For this reason, initial premiums for guaranteed renewable policies can be less expensive than non-cancelable policies.

Other less expensive policies with limited, if any, premium or renewability guarantees are also sometimes available.

Definition of Disability

LTD providers use two common definitions of “disability”:

  1. Own Occupation or “Own Occ”: to be considered disabled you must be unable to perform your own occupation. Generally, you will get a benefit check for between two and five years.
  2. Any Occupation or “Any Occ”: to be considered disabled you must be unable to work in any occupation. Generally, you will get a benefit check until you can go back to work or until the policy ends.

Part-Time Work

You may also be able to return to work part-time and still receive part of your LTD benefit check. Make sure to check the details of your plan before returning to work part-time.

Exclusions

Many policies will not cover disabilities caused by drug abuse, alcoholism, attempted suicide, war, or attempts to commit a crime.