Long Term Disability Insurance
Protect your income when a serious illness or injury keeps you out of work for the long haul.
Why Need Long Term Disability Insurance?
Long term disability insurance replaces a significant portion of your income if a serious illness, injury, or chronic condition prevents you from working for an extended period.
Unlike short-term disability, which covers temporary conditions lasting a few months, long term disability is designed to sustain you financially through a prolonged or permanent disability.
How Long Term Disability Insurance Works
Most people insure their homes, their cars, and their lives, but overlook the one asset that makes all of those things possible: their income. Long term disability insurance fills that gap, ensuring that a health event does not become a financial crisis.
When a disabling condition prevents you from performing the duties of your occupation, your long term disability policy activates after an elimination period, which typically ranges from 90 to 180 days. During the elimination period, a short-term disability policy or your savings typically cover your expenses. Once that waiting period is met, your LTD policy begins paying monthly benefits.
Who Needs Long Term Disability Insurance?
Long term disability insurance is one of the most overlooked coverages in personal and business financial planning. It is especially critical for:
- Working professionals whose income supports their household
- Self-employed individuals and small business owners with no employer group plan
- High-income earners whose lifestyle depends on continued earning power
- Anyone with significant financial obligations such as a mortgage, student loans, or dependents
- Professionals in specialized fields (medicine, law, architecture, finance) who cannot easily transition to other work
- Employees whose employer-sponsored group plan provides limited coverage
Even if you have an employer-sponsored group disability plan, it may only replace 40–60% of your base salary without bonuses or commissions. Individual long term disability coverage can supplement a group plan to ensure full income replacement.
Long Term Disability
Insurance FAQs
A general rule of thumb is to replace 60–70% of your gross income. However, the right amount depends on your monthly expenses, existing coverage, savings, and lifestyle. JMG can run a needs analysis to help you determine the right benefit amount.
Yes. Individual long term disability policies are an excellent solution for self-employed individuals, freelancers, and business owners who do not have access to an employer group plan. Your benefit amount is typically based on your documented income.
Short-term disability covers temporary conditions lasting up to 6 months, with a very short elimination period (0–14 days). Long term disability kicks in after a longer waiting period (90–180 days) and can pay benefits for years or even until retirement. The two coverages are designed to work together.
Other Health/Life Products At JMG
Your Income Is Your Most Valuable Asset. Protect It.
A serious illness or injury could sideline you for years. Long term disability coverage from JMG ensures that your financial life stays intact while you focus on recovery.
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