Does My State Offer Long Term Disability Insurance?

There are no states that provide long-term disability insurance to the public for illnesses or accidents that are not work related. Three types of long-term disability are common in the United States.                      

• Workmen’s compensation covers workers who suffer illnesses or injury while working. Workmen’s compensation provides short and long-term benefits. There is a deduction from worker’s wages to help pay for Workmen’s compensation and employers are required to contribute. The requirements for eligibility for workmen’s compensation benefits are not as stringent as Social Security
• Social Security disability is a federal program. Taxes for social security are deducted from your wages when you are paid. To be eligible for Social Security Disability a worker must meet medical and non-medical requirements. A major requirement for Social Security Disability is that the illness or condition must be expected to last 12 months or result in death.
• Private insurance -- It is possible to purchase long-term disability insurance. Many employers offer it as part of a benefits package. Additionally many states include long-term disability insurance as part of a benefits package to state employees. Your state insurance commission would be a good source of information on reliable insurance companies that provide long-term disability policies in your area. 

Estate planners will tell you that long-term disability insurance is an important part of your overall planning for retirement plan and will protect your retirement income. This means that you must be proactive and purchase long-term disability insurance to protect your income and life style if you should become disabled. Social Security only provides 40 percent of your pre-disability income. It is possible to collect workmen’s compensation and social security disability but there are income limitations on both programs to prevent windfall payments to any beneficiary.