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
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CHAPTER · INSURANCE PROTECTION ESSENTIALS · FOUNDATIONSFinding the Risks That Could Break Your FinancesCHAPTER · INSURANCE PROTECTION ESSENTIALS · FOUNDATIONSDisability Insurance: Protecting Your PaycheckRELATED TERMS
SOURCES
- Disability Benefits. Social Security Administration.
- Publication 525, Taxable and Nontaxable Income, Sickness and Injury Benefits. Internal Revenue Service.
- Publication 525, Taxable and Nontaxable Income. Internal Revenue Service.