What does long-term disability insurance mainly protect against?

Long-term disability insurance is specifically designed to provide financial protection for individuals who are unable to work due to a significant disability resulting from injury or illness lasting for an extended period, typically longer than usual short-term disability policies cover. This type of insurance helps replace a portion of a person’s income, ensuring they have financial support during the period they cannot earn a living from their job.

The focus on long-term injuries or illnesses that prevent work highlights the primary purpose of this insurance product – to safeguard an individual's financial stability when they face prolonged health challenges that hinder their ability to perform their job duties. In contrast, short-term illnesses, retirement funding, and health insurance premium costs do not align with the specific coverage goals of long-term disability insurance, which is aimed solely at mitigating the financial impacts of long-term disabilities.