The Importance of Long-term Disability Insurance

Long-term disability (LTD) insurance is key to financial security.

Generally, we face a greater risk of becoming disabled than dying, especially during our 30s and 40s. If you become partially or totally disabled and unable to work, LTD replaces at least some of your income.


Your employer may offer short-term disability coverage, which is generally extended paid sick leave, and group LTD coverage. Group LTD coverage goes into effect after short-term coverage ends, and it lets you continue receiving some of your pay until your disability ends or, if earlier, once you’ve received benefits for a given length of time.
Basic group LTD, typically offered at no cost to you, provides around 60% of your pay up to a monthly maximum. This may not be enough income in the event of a long disability, especially if your earnings include honoraria or other items that are separate from the base pay that group LTD partially replaces. You can supplement basic group LTD by purchasing individual LTD coverage from a private insurer outside the workplace.

Actively-contributing members of the Annuity Plan can seek professional guidance from an EY planner at no cost to you to determine whether you are adequately covered for a long-term disability. Call your EY financial planner at 1.877.927.1047 or log into the Ernst & Young Financial Planning Center® (EYFPC) at for help.

This article is used with permission of Ernst & Young LLP.