GLOSSARY · INSURANCE

Long-term disability insurance

Insurance that replaces part of your earnings if illness or injury keeps you from working for a long time. Benefits start after an elimination period, often about 90 days, and last for a set benefit period, sometimes to retirement age. Whether it pays depends on its definition of disability (unable to do your own occupation, or any occupation), and benefits are taxable when an employer paid the premiums with pre-tax money.

Also called: LTD insurance, disability income insurance, income protection insurance, LTD
COMPUTE IT WITH YOUR NUMBERS
Disability income need and runway →If I could not work, how long would savings last?
LEARN IT PROPERLY
CHAPTER · INSURANCE PROTECTION ESSENTIALS · FOUNDATIONSFinding the Risks That Could Break Your FinancesCHAPTER · INSURANCE PROTECTION ESSENTIALS · FOUNDATIONSDisability Insurance: Protecting Your Paycheck
RELATED TERMS
Human capitalEmergency fund
SOURCES
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