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Long-term Disability Insurance: What Is It and Should I Have It?

Posted September 29, 2021

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During the open enrollment plan that runs from November 1, 2021, to January 15, 2022, many will consider whether enrolling in long-term disability is the right move.

Nearly 110 million Americans did not have long-term disability insurance in 2021. At the same time, only 48% of Americans say they had enough savings to cover three months of living expenses if they were to stop working (Source: Simply Insurance).

You may think it will never happen to you, but the fact of the matter is that you don’t know that. According to the Social Security Administration, 1 in 4 people who are 20 years old now will be disabled before they reach age 67. And it might not be for the reasons you expect— some of the most common reasons for disability claims include pregnancy, mental health issues, and cancer (Source: GuardianLife).

You have to ask yourself, if you are one of the 110 million Americans who do not enroll in a long-term disability plan, will you have the financial savings and foundation to be secure until you can get back on your feet and back to work?

If you choose to enroll in a long-term disability program, you’ll find that the insurance plan typically covers 50-60% of your income while out of work.

It is also essential to know the difference between your company’s long-term disability and short-term disability plans. While every policy is different, the most apparent difference between the two will be the length of coverage. As its name implies, long-term disability insurance will provide coverage for a longer period and is often measured out in years, and can last until you retire (Source: GuardianLife).

Keep in mind there is a waiting period before long-term disability goes into effect, which can range from 3 months to a year. During this time, if you have not enrolled in short-term disability insurance, you will need to have enough savings to cover your expenses (Source: GuardianLife).

If you still aren’t sure if a long-term disability plan is right for you or when the right time to enroll is, we are here for you.

At Thayer Financial, we can talk with you about your options, evaluate your investment strategies and find whether it would be a financially savvy decision for you to enroll in a long-term disability insurance plan. Since we work as a fiduciary 100% of the time, you can rest assured that we are working with your best interest in mind. We receive no kickbacks or commissions from insurance companies, and we only work in your best interest.

Thayer Financial is ready to advise you on your long-term disability options from the perspective of comprehensive financial planning. As financial advisors in Hickory, North Carolina, Thayer Financial is your dedicated resource for fee-only, fiduciary advice. Schedule an appointment or call us today.


Thayer Financial, L.L.C. (“Thayer Financial”) is a registered investment adviser offering advisory services in the State of North Carolina and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. This website’s presence on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute. Follow-up or individualized responses to consumers in a particular state by Thayer Financial in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or according to an applicable state exemption.

All written content on this site is for information purposes only. Opinions expressed herein are solely those of Thayer Financial, L.L.C., unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to other parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.


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