Long term disability insurance policies provide lifetime benefit guarantees to the policy holder & have an option of renewing policy on an annual basis.
About private long term disability insurance:
Private long term disability insurance has to be renewed before the end of policy period or if it lapses. Policy can be renewed on an annual basis if it has been renewed on previous years' occurrence.
-Insurance cost is lower than group long term insurance.
-No requirement to have a nursing license.
-Lower administrative costs for insurance carrier.
Pros of private long term disability insurance:
In private long term disability insurance you need to plan for long-term future of account & put money into it regularly. It also helps if you're willing to do a little side work from time to time.
-Long-term disability insurance helps you save tax. Employees need to register themselves for these plans through the respective insurance companies.
Pros of private long term disability insurance:
Private long term disability insurance has very low deductible, which means a lot less out of pocket cost for a family. Also low to medium premium for families with high level of insurance coverage.
Cons of private long term disability insurance:
-Premium can increase if person who needs cover starts to incur a lot of medical bills.
-Cancellation benefit may be denied in case of substance abuse.
In private long term disability insurance while being out of work is a significant hardship, you can cover family & a household if you lost a job you worked your entire life for. It is a life changer.