Long & Short Term Disability Insurance
Protect Your Paycheck: Short-Term & Long-Term Disability
Your income is the engine behind everything—lifestyle, savings, kids’ education, retirement. Can you afford to lose your paycheck? Most group plans replace only part of your salary and may be taxable, leaving a gap when you need stability most.
Why paycheck protection matters
- 1 in 4 20-year-olds will face a disabling condition before full retirement age. (SSA Fact Sheet)
- 65% of private-sector workers have no private long-term disability coverage. (BLS/SSA summaries)
- Employer LTD typically covers only 50%–60% of pay—and if your employer pays the premium, benefits are usually taxable. (Plan documents vary)
Short-Term vs. Long-Term Disability—how they fit
Short-Term Disability (STD)
- Designed for the first weeks/months of a disabling event.
- Typical elimination (waiting) period: 7–30 days (often ~14 days).
- Typical benefit length: 3–6 months (policy-specific).
- Rule of thumb: If you don’t have ~3 months of cash reserves, you probably need STD.
Long-Term Disability (LTD)
- Generally starts after a 90-day elimination period.
- Pays for years—often to age 65; some policies extend to SSNRA or beyond (some past 70).
- Average LTD claim durations have been reported around 2–3 years (varies by study).
Own-Occupation protection & portability
We prioritize true own-occupation definitions—if you can’t perform the material duties of your specialty, you can receive benefits even if you work in another field. That matters for high-skill earners (e.g., a surgeon with a hand injury).
- Private policies are portable: you keep them if you change employers or go independent.
- Tax treatment: Individual policies paid with after-tax dollars usually pay tax-free benefits. Employer-paid benefits are typically taxable.
“Work covers 40%–60%… am I fine?”
| Area | Typical Work Plan | Your Need | What We Add |
|---|---|---|---|
| Income replaced | ~50%–60% of base pay; taxable if employer-paid; caps apply | ~70%–80% after-tax (household-specific) | Private own-occ to fill the net pay gap; portable & customizable |
| Bonuses/RSUs | Often excluded | Replace a fair share of total comp | Riders/benefit design to address variable comp (where available) |
| Duration | To SSNRA/65; terms vary | To targeted retirement age | Layered LTD + optional COLA, catastrophic riders |
| Career change | Any-occ after 24 mos in many plans | Protection of specialty | True own-occupation definition |
Close your income gap—before life opens it for you
We’ll audit your current benefits, model taxes and caps, and right-size private, portable coverage—true own-occupation with options for partial/residual disability and COLA. You’ll leave with a clear, pressure-free plan.
Disclosures: Features, definitions (e.g., true own-occupation), riders, taxation, and availability vary by carrier and state and may change. This page is educational, not tax or legal advice. Consult your tax advisor. Group plan details (percentages, caps, taxation) depend on your plan documents and pay structure. Guarantees rely on the claims-paying ability of the issuing insurer.