Long Term Disability Insurance
Long-term disability coverage will provide benefits
to age 65 or 70 while providing 60-70 % of an individual’s
monthly income to some specified amount. One of the most important
parts to a long term disability policy is how the policy defines
the definition of disability.
Example
of Long term disability plan design:
90 Day Elimination Period
70% of monthly income to a maximum of $8,000
Definition of disability - Own Occupation
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• Benefits will begin: on the first
day after 90 days from the date of disability.
• The disabled individual
will receive 70% of there annual salary till they reach
retirement age of 65 year old.
Since the policy had an “own
occupation” definition the individual will continue
to receive disability payments till
age 65.
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