Perhaps your employer provides you with group Long Term Disability (LTD) coverage. This benefit is a valuable component of most benefits packages, but may not adequately cover the loss of income that results from a disability. Here are a few LTD limitations you should know about when you’re evaluating the total insurance amount required to meet your needs in the event that you lose your income due to sickness or injury.

• LTD typically only covers base salary and not bonuses

• High income earners may be under-insured as most group LTD plans have built in maximums

• LTD usually does not include benefits for partial disability

• Most LTD plans include a two-year regular occupation definition of disability, switching to any occupation thereafter (any occupation means if you can work at any job you’re qualified for by education or experience, even for lower pay, your benefits will cease)

• Employers review employee benefits regularly and make adjustments to contain costs, so at any time, your LTD plan can change, and your group benefits are not within your control

• You can’t take LTD coverage with you when you leave an employer

These are just some of the LTD limitations that you should be aware of that could impact a successful claim. A simple review of your benefits package and a review of the added security that comes with owning your own disability insurance will help you determine if integrating personal coverage into your overall benefits portfolio is right for you and your circumstances.

For more information on the importance of living benefits, have a look at Enhancing Your Benefits with Critical Illness and Disability Insurance, Strengthening Your Safety Net with Critical Illness Insurance, Insuring Your Greatest Asset with Disability Insurance and SMART TALK… about living benefits.

And if you have any questions or need a little more information about income replacement, be sure to contact our office.