What is a long-term disability insurance designed to provide?

Long-term disability insurance is specifically designed to replace a portion of your income if you become unable to work for an extended period due to a disabling condition, such as an illness or injury. This type of coverage ensures that you continue to receive income, typically a percentage of your salary, which helps maintain your financial stability while you are unable to perform your job functions.

Unlike immediate cash benefits for all injuries, which would be more characteristic of an accident or health insurance, long-term disability insurance focuses on the ongoing income needs of a person who is disabled for a longer duration. It is not structured as a one-time lump sum payment, which would typically be associated with life insurance or certain forms of settlement or compensation. Additionally, it is not limited to short-term injuries, as its purpose extends to covering chronic conditions that may last for months or years, therefore emphasizing the long-term aspect of the disability.