Life is uncertain for New Jersey residents. An accident can occur that prevents you from continuing to work. You might need to sign up for long-term disability insurance to replace your income.
What is long-term disability insurance?
Long-term disability insurance coverage is available to workers who become disabled and can no longer work in their regular job for several months or even longer. Employers could offer this type of insurance as an option to protect employees during this time until they are able to return to their jobs. Long-term disability insurance can cover workers up to the age of retirement.
How does long-term disability insurance work?
When a person is unable to work, long-term disability insurance can cover around 60% of their income. However, a policy can range anywhere from 50% to 80%. Long-term disability insurance can replace the income a person would lose if they have to take a job that pays less due to their injury or illness.
Employees who file for coverage can only qualify if they meet certain requirements. One is that the employee must have worked for the employer for a certain length of time before they can be covered by long-term disability insurance.
Employees must also work full-time in their jobs for at least 30 hours per week. They also need to choose the benefits they will receive and contribute to their insurance plan.
In addition to financial assistance, long-term disability insurance sometimes also includes job training to help employees who have been disabled. This is helpful when a person needs to be reassigned to a different job while they recover from their injuries.
If an employee has private long-term disability insurance, they can continue with their coverage even if they have to switch employers. However, not everyone qualifies for coverage. In some cases, preexisting conditions may not be covered.