Understanding LTD Insurance
Everything you need to know about long term disability benefits
25%
Will be disabled before 65
34.6 mo
Average disability length
$2,400
Average monthly benefit
How LTD Insurance Works
You Become Disabled
An illness or injury prevents you from working in your occupation.
Elimination Period
Wait 90-180 days (covered by short-term disability or savings).
Benefits Begin
Receive 60% of your income monthly until you recover or reach age 65.
Elimination Periods
90 Days
Most common for group LTD
180 Days
Lower premium option
1 Year
Lowest premium
Own Occupation vs Any Occupation
Own Occupation
Pays if you can't do YOUR specific job. Better coverage - a surgeon who loses fine motor skills would qualify even if they could teach.
Any Occupation
Pays only if you can't do ANY job you're qualified for. Harder to qualify - many policies switch to this after 2 years.
Tax Considerations
- • Employer-paid premiums: Benefits are taxable income
- • You pay premiums: Benefits are tax-free
- • Split arrangement: Proportionally taxed
Legal Disclaimer
This estimate is based on projected 2026 data and industry averages. Actual premiums vary by insurer, location, and individual factors. Consult a licensed insurance agent for accurate quotes.
*Based on estimated 2026 projections. Data may not reflect real-time legislative changes.