Insight

Understanding Long-Term Disability Insurance

Understanding Long-Term Disability Insurance

David Lackman

David Lackman

August 22, 2023 09:52 AM

Accidents are an unfortunate part of life, which is why it makes sense to have insurance to protect your financial well-being.

Long-term disability (LTD) insurance provides financial assistance if you are unable to complete your assigned work duties due to an illness or injury. While many people are familiar with concept of an LTD policy, there are many moving parts. That is why having some understanding of this type of insurance can be beneficial.

At Gluckstein Lawyers, we can explain your basic rights and obligations when it comes to an long-term disability claim. Claim denials or a termination of benefits are not uncommon, but that doesn’t mean you should accept the insurance company’s position when they say “no”. We will examine the available remedies and decide on the most appropriate course of action.

How Does LTD Work?

Long-term disability is a benefit that your employer may offer, either paying all of the premiums or sharing the cost with you through regular payroll deductions. You can also purchase long-term disability coverage privately. It should be noted that if your employer’s plan includes group disability coverage, these policies tend to have lower benefit amounts. You may therefore want to consider buying additional coverage to further protect yourself. It is also prudent to review what your coverage includes and the limitations and restrictions of the policy.

Who pays for the policy is usually important because there may be quite different tax implications. If you paid and you make a claim because you are unable to work, the money you receive is not taxed. However, if your employer pays the full amount of the policy and you make a claim, that would be considered a taxable benefit, just as a car allowance would be taxed.

It is not at unusual for an employer to also offer what is known as short-term disability insurance. This comes into play when an employee is unable to work due to an injury or an illness that typically lasts three to six months. The assumption with short-term disability is that you will be back on the job within a few months. Anything longer than that and the worker may be eligible for LTD, which could conceivably continue until age 65

To read the full article, click here.

Trending Articles

Introducing the 2026 Best Lawyers Awards in Australia, Japan, New Zealand and Singapore


by Jennifer Verta

This year’s awards reflect the strength of the Best Lawyers network and its role in elevating legal talent worldwide.

2026 Best Lawyers Awards in Australia, Japan, New Zealand and Singapore

Revealing the 2026 Best Lawyers Awards in Germany, France, Switzerland and Austria


by Jamilla Tabbara

These honors underscore the reach of the Best Lawyers network and its focus on top legal talent.

map of Germany, France, Switzerland and Austria

Effective Communication: A Conversation with Jefferson Fisher


by Jamilla Tabbara

The power of effective communication beyond the law.

 Image of Jefferson Fisher and Phillip Greer engaged in a conversation about effective communication

The 2025 Legal Outlook Survey Results Are In


by Jennifer Verta

Discover what Best Lawyers honorees see ahead for the legal industry.

Person standing at a crossroads with multiple intersecting paths and a signpost.

The Best Lawyers Network: Global Recognition with Long-term Value


by Jamilla Tabbara

Learn how Best Lawyers' peer-review process helps recognized lawyers attract more clients and referral opportunities.

Lawyers networking

Jefferson Fisher: The Secrets to Influential Legal Marketing


by Jennifer Verta

How lawyers can apply Jefferson Fisher’s communication and marketing strategies to build trust, attract clients and grow their practice.

Portrait of Jefferson Fisher a legal marketing expert

Is Your Law Firm’s Website Driving Clients Away?


by Jamilla Tabbara

Identify key website issues that may be affecting client engagement and retention.

Phone displaying 'This site cannot be reached' message

A Guide to Workers' Compensation Law for 2025 and Beyond


by Bryan Driscoll

A woman with a laptop screen reflected in her glasses

Medical Malpractice Reform Trends in Texas, Utah, Georgia and SC


by Bryan Driscoll

A fresh wave of medical malpractice reform is reshaping the law.

Medical Malpractice Reform Trends hed

Why Jack Dorsey and Elon Musk Want to 'Delete All IP Law'


by Bryan Driscoll

This Isn’t Just a Debate Over How to Pay Creators. It’s a Direct Challenge to Legal Infrastructure.

Elon Musk and Jack Dorsey standing together Infront of the X logo

Best Lawyers Launches CMO Advisory Board


by Jamilla Tabbara

Strategic counsel from legal marketing’s most experienced voices.

Group photo of Best Lawyers CMO Advisory Board members

Changes in California Employment Law for 2025


by Laurie Villanueva

What employers need to know to ensure compliance in the coming year and beyond

A pair of hands holding a checklist featuring a generic profile picture and the state of California

Common Law Firm Landing Page Problems to Address


by Jamilla Tabbara

Identify key issues on law firm landing pages to improve client engagement and conversion.

Laptop showing law firm landing page analytics

New Employment Law Recognizes Extraordinary Stress Is Everyday Reality for NY Lawyers


by Bryan Driscoll

A stressed woman has her head resting on her hands above a laptop

Best Lawyers Introduces Smithy AI


by Jamilla Tabbara

Transforming legal content creation for attorneys and firms.

Start using Smithy AI, a content tool by Best Lawyers

How to Create High-Converting Landing Pages for Your Law Firm


by Jamilla Tabbara

Learn how to create high-converting law firm landing pages that drive client engagement and lead generation.

Laptop screen displaying website tools to improve client conversion rates