What is a long-term disability insurance policy?

A long-term disability insurance policy is an insurance policy that provides financial protection for individuals in Rhode Island if they become disabled and are no longer able to work. The policy pays a portion of the employee’s income if they cannot work due to an illness, injury, or other covered disability. In Rhode Island, the legal requirements for long-term disability protection are outlined in the Disability Planning Law. This law requires insurance providers to offer long-term disability insurance policies to employers. When an employer agrees to this policy, the insurance provider will provide coverage to eligible employees at their own cost. The insurance policy will generally cover the following expenses: lost wages, rehabilitation services, medical expenses, and other costs associated with the disability. Typically, the policy will pay out benefits for a certain amount of time, such as two years or until the employee reaches the age of 65. Long-term disability insurance policies are beneficial to Rhode Island employees because they provide peace of mind in the event of a disability. The policy ensures that employees can take advantage of the benefits they have earned if they are no longer able to work. As such, employers in the state should strongly consider offering disability insurance to their employees as part of their employee benefits package.

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