What is the definition of Long-Term Disability Income Insurance?
Long-Term Disability Income Insurance refers to the insurance that pays disability income benefits for long-term disability.
The payments for this insurance start once the benefit payments for short-term disability income cease. Long-Term Disability Income payments will continue for as long as the insured person is disabled. However, the payments stop once the insured person is able to go back to work, becomes qualified for pension benefits, or if the person dies.
The disability income payouts are usually computed as a percentage (about 60 to 70%) of the insured person's gross income.
This coverage is important as it protects the insured person and his family from the loss of income that results from his being disabled and unable to keep his employment.
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