Long-term disability insurance is one of the benefits your employer may offer. While many employers will pay a portion of the costs for you, you may have to cover the full expense. This may have you wondering if it is worth it to get this insurance.

NPR explains that LTD can pay off if you end up needing it, but if you never use it, then it may seem like a waste of money. The thing is, though, you never know when an accident or illness will strike. If you prepare by getting insurance, then it can make such a situation much easier to deal with. It could save you a lot of hassle and prevent you from ending up in financial trouble when you are not able to work.

The basics

LTD will provide you with some recovery of pay you lose due to being off work for an extended time. Typically, this is because of an injury or illness that prevents you from working. It is common for benefits to not become active until after a waiting period, which can be as long as six months. You can enroll every year during the open enrollment period. Your employer may also auto-enroll you.


If you use your LTD plan, you could get payments of up to 60 percent of your regular paycheck. The average time for people to receive payments is three years, which goes to show how beneficial this coverage can be. However, some employers may only offer a basic coverage plan that pays as low as 40 percent of your wages. You may then have the option of buying more coverage to get closer to 60 percent.