Insurance for long-term medical disability is financial insurance. It doesn’t pay for medical costs. Rather it pays you a monthly sum to replace lost income that you would have had if you weren’t disabled. Often, you will sign up for this through your job; you may already be enrolled. You’ll pay a premium (and if it’s through your job, it’s often taken out of your paycheck). The benefits kick in once you tap out your short-term disability. You can be covered for LTD until your 65th birthday -- no exceptions.
Short-term disability is fairly inexpensive, but long-term disability insurance can be pricey if you need to buy it yourself.So, before you decide to purchase this kind of insurance, consider alternatives like a health savings account (HSA), mutual funds, or other savings. You can also apply for benefits under Social Security.