LTD 101: Long-term disability coverage explained

As a financial professional, you might think your chances of a disability that prevents you from working are slim. But the most common reasons people go out on disability could happen to anyone. And if it happens to you, you may need a plan to help pay your bills.

Learn why having disability coverage should be an important part of your financial future.


What is long-term disability coverage?

Long-term disability (LTD) coverage should be an important part of your health and wealth journey. It helps protect your paycheck if you’re unable to work due to an illness or injury that lasts for a long time, usually for more than three to six months.  

What could benefit payments be used for?

Benefit payments could be used for whatever you need to help you continue to meet your financial obligations. The benefit refers to the amount of the monthly payments that you could receive if you become totally disabled due to an injury or illness. You should consider how much coverage you may need to help supplement your income. The money you may receive could help pay for your mortgage, medical bills, and more while you get back on track—and help prevent you from tapping into your savings.

Do you have to wait to receive benefit payments?

Most plans have something called an elimination period, which is the time between your claim is approved and when benefits begin. Payments may not be issued right away and will start after the elimination period has ended. 


What should you look for in a plan? 

Consider policies that offer a definition of disability that covers benefits if you’re unable to perform the duties of your own job, and not just any job.
Long-term disability coverage could help with income replacement when the unexpected takes away your ability to earn a paycheck. Having reliable coverage helps prevent you from tapping into your savings—and keeps your financial future on the right track. Already have coverage through your employer? Supplementing that plan with one you buy on your own can help close any gaps you may have in the amount of income you will need to replace if you become disabled.


Group Insurance coverage is issued by The Prudential Insurance Company of America, a Prudential Financial company, Newark, NJ. CA COA #1179, NAIC #68241

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