Many people get Private Long-Term Disability insurance to protect their financial well-being. It is especially important for people who have a high risk of getting a long-term disability, like people who work in dangerous jobs or have a family history of disabilities. It provides income protection if they become disabled and cannot work for an extended time.
But did you know that Private LTD policies may offer more than just basic disability benefits? Here are three common additional features that you may receive:
Cost-of-living adjustments (COLAs)
Cost-of-living adjustments (COLAs) help people who are receiving disability benefits keep up with the increasing cost of living. This means that as the groceries or housing prices go up, the amount of money they receive will also increase. With this adjustment, they can still afford the same things they could before what happened to them.
For example, let us say that a policyholder is receiving a $50,000 disability benefit. If their cost of living goes up by 3%, their benefit amount would increase to $51,500 (3% of $50,000). This can be especially helpful for policyholders living in areas with high living costs.
Residual disability benefits
Residual disability benefits help policyholders who are partially disabled and cannot work full-time. These benefits provide some income if they can still work a little but need help.
It usually gives policyholders a percentage of the full benefit amount. This is based on how much they lost from their pre-disability income. For example, if a policyholder earns half of what they were before getting sick or hurt, they might get half the full benefit amount. This can help policyholders keep some income while recovering from their disability.
Rehabilitation benefits
Rehabilitation benefits can be especially helpful for policyholders who cannot go back to their old jobs because of their disability. It can help policyholders find a new job that fits their abilities and what they can earn. These benefits might also include training, job placement and other support to help them return to work.
In conclusion, private long-term disability policies might offer extra features to help policyholders when they need it most. However, note that not all policies have these features, so it is important to carefully read the policy terms before buying. By understanding your options and choosing the right policy, you can be ready for anything that might happen.
