long-term disability (LTD) income insurance
LTD insurance replaces earnings lost due to illness or disability occurring
on or off the job. Coverage may be purchased on an individual or group basis.
Individual policies typically do not pay until the period of the disability
exceeds a specified elimination period, usually 30 days or longer. Recovery
under group disability income policies is often structured to begin after short-term
disability income insurance benefits or uninsured salary continuance payments
cease. One of the most important provisions in either group or individual policies
is the definition of "disability." The broader the definition, the broader the
scope of coverage is. Most LTD policies are structured to pay benefits until the
insured reaches age 65.