LTD - Long Term Disability

Your clients employer may provide Long Term Disability coverage through work. Benefits help replace income for an extended period, often plans range from two to five years or until the disabled person turns 65. Plans with longer benefit periods are more expensive. These plans can have different waiting periods before they pay benefits, typically 60, 90, 180, or 365 days. Plans can also have different classifications which will determine what the definition of disability is.

Don't assume that your clients plan through their employer is adequate. Often plans have a stop loss or maximum amount that will be paid. They often state that they will pay 60% of your clients income up to a determined amount. What most advisors fail to take notice of is if the benefits are taxable or not taxable. If the benefits are taxable you're client is not really getting 60% of their income. Many group LTD plans are taxable, check your clients LTD plan to see how they are protected. Your client often doesn't know what they have!

We often find that high wage earners think they have adequate coverage and after a review we find they don't have near enough coverage. We can complement group coverage to get your client the protection they need.