Coverage guide
What this page is about
Individual long-term disability insurance replaces part of your income if illness or injury keeps you from working. This page is only about personal LTD — own-occupation definitions, elimination periods, benefit periods, tax treatment, and why employer coverage may not be enough.
Personal LTD vs. employer disability
Employer disability is helpful but often capped, taxable, and tied to your job. Personal disability coverage is individually owned, portable, and can use stronger definitions for your specific occupation.
- Own-occupation language can be critical for specialists and professionals.
- Benefits are often tax-free when you pay premiums with after-tax dollars.
- Coverage should be bought while healthy — underwriting gets harder later.
What it usually covers
- Monthly income replacement after the elimination period
- Illness and injury that meet the policy's disability definition
- Benefit periods such as 2 years, 5 years, or to retirement age
- Optional riders such as residual disability, COLA, future increase, and own-occupation language
What it usually does not cover
- 100% of income
- Short gaps shorter than the elimination period
- Every pre-existing condition if excluded by underwriting
- Business overhead unless a separate business policy is purchased
Best fit
- Self-employed workers and professionals
- High earners whose employer LTD is capped
- People with dependents relying on their paycheck
- Anyone whose savings would not cover months or years without income
Usually not the right fit
- Someone without earned income
- Clients who cannot pass underwriting or afford meaningful benefits
- People who only need a few weeks of sick-pay protection
- Anyone choosing a policy without reviewing the disability definition
For disability insurance, the definition of disability matters more than the logo on the quote — I review benefit amount, waiting period, occupation class, riders, and tax treatment.
