Long-term disability (LTD) generally refers to a type of insurance designed to replace some employee wages when the employee is temporarily out of work for a significant amount of time due to illness or injury. Private insurance and employer sponsored plans vary in what length of time out of work qualifies for LTD but it usually requires, at minimum, employees to take all accrued vacation and sick leave before coverage can start.
In addition to private supplement plans and employer plans, the Social Security Administration (SSA) provides long-term disability coverage in some cases. When filing a claim to receive disability benefits, individuals must meet an established criteria to qualify for supplemental aid.
Getting approved for long-term disability can be a lengthy process and coverage is often only available for disabilities expected to last longer than 12 months. The SSA insurance may pick up where private and employer funded plans have exhausted their benefits.
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