This allows you to stop working & earn income while you recover or while you are in retirement. Longer you are out of work, more likely you need this policy.
About long term disability insurance cost:
Pre-existing conditions policy should cover up to 10% of long term disability insurance cost. People don’t pay full cost of a pre-existing condition policy because of all of preventative treatments.
-Employee should be paid at least the minimum wage of the state they live in while on long term disability pay.
-Employee could get back to work sooner.
Pros of long term disability insurance cost:
Long term disability insurance costs more than a short term insurance. However, if the income is guaranteed, you are paying for the premiums out of your paycheck, but you will get it no matter what.
-Employee could get back to work sooner insurance company can invest worker's money.
-If injured worker refuses to accept payments, employer sue employee.
Pros of long term disability insurance cost:
As long as you pay premiums of long term disability insurance cost, coverage will continue through the month you die or become disabled, which is low cost solution for many business owners/employers.
Pros of long term disability insurance cost:
-If your policy is underwritten at a higher cost to your company, you can buy cheaper disability insurance. If you are self-employed, you can buy cheaper.
With long term disability insurance cost low, it may be beneficial to take money you are saving in health premiums & pay for basic disability policy cover that does not include secondary protection.