You stand a greater risk of becoming disabled than of dying before age 65. Almost half of all home mortgage foreclosures result from homeowners being disabled. Disability insurance can protect your current and future earnings in the event of a disability due to injury or illness. Generally, between 50% and 70% of your net income can be protected. Once disabled, these benefits start after satisfaction of the elimination period typically 90 or 180 days and can last to age 65.

Long-term disability insurance provides covered employees or individuals with income in the event of a disability.

Cost

Monthly premium rates for Long-term Disability Insurance are quoted as a percentage of gross monthly payroll. For example, ten (10) covered employees each making $4,000 per month would result in a covered monthly payroll of $40,000. A rate of ($0.28) would yield a monthly premium of $112.00 ($40,000 times 0.0028).

Employer Premium Contribution

Most employers pay 100% of the premiums for group Long-term disability plans. Voluntary (Employee-Paid) Disability insurance is available for groups with five (5) or more employees.