Long Term Disability
Long Term Disability is similar to Short Term Disability in that it pays benefits to the employee while he is unable to work due to a disability. However, Long Term Disability does not usually pay benefits until the employee has been out-of-work for 3 months or more (this elimination period usually coincides with the ending date of the Short Term Disability policy). In addition, Long Term Disability benefits often continue until retirement age, if the disability continues until retirement.
A typical Long Term Disability plan begins to pay benefits after the employee has been off work for 3 or 6 months, and pays benefits for several years or until retirement age, depending on the policy.