If you’ve been injured or become seriously ill and can’t work, long-term disability (LTD) insurance can offer financial support. But a common question many people ask is: How long does long-term disability last?
The answer depends on your insurance policy, your age, the type of coverage you have, and whether you qualify for government programs like Social Security Disability Insurance (SSDI).
This article will explain everything you need to know about long-term disability—from how long payments last to what happens when those payments end.
What Is Long-Term Disability Insurance?
Long-term disability insurance provides income replacement if you’re unable to work due to a serious illness or injury. It typically kicks in after short-term disability ends—usually after 90 to 180 days.
It’s offered by:
- Employers (group policies)
- Private insurers (individual policies)
- Government programs (like SSDI for qualifying workers)
The goal is to help you cover everyday expenses while you recover or if you’re permanently unable to work.
How Long Does Long-Term Disability Last?
The length of time that long-term disability (LTD) benefits last depends on the specific terms of your insurance policy. Different plans offer different benefit periods, and it’s important to know what your plan covers before you ever need to use it.
Most LTD plans fall into one of the following categories:
- 2, 5, or 10 years – These are common in private or individual disability insurance policies. They provide income replacement for a fixed number of years after your disability begins. These plans are usually more affordable but offer limited coverage.
- Until age 65 or your normal retirement age – This is the most common type of LTD coverage in employer-provided group plans. Benefits continue until you reach retirement age, assuming you remain disabled according to the policy’s definition.
- For life – Some premium or high-end policies offer lifetime benefits, but these are rare and come with much higher premiums. They may also have stricter rules or longer waiting periods before benefits start.
No matter which type of policy you have, always check for a section in your plan that mentions the “maximum benefit period.” This is the longest amount of time you can receive payments while disabled. Keep in mind that some plans may also reduce benefits after a certain number of years or require you to meet additional criteria to keep receiving payments.
Duration Based on Policy Type
The length of long-term disability benefits depends heavily on the type of coverage you have. Each type—whether through work, purchased privately, or government-sponsored—has different rules for how long you can receive payments.
1. Employer-Sponsored LTD Plans
These are group plans offered by many employers as part of a benefits package.
- Most employer-sponsored LTD policies provide benefits until age 65, which is considered the “normal retirement age.”
- However, some plans limit benefits to 2 or 5 years, especially for certain job categories or less severe disabilities.
- The monthly benefit is typically around 50% to 60% of your pre-disability income, helping to cover essential expenses while you’re unable to work.
2. Private LTD Policies
Private long-term disability insurance is purchased individually and offers more flexibility.
- These policies let you choose your benefit period when you first buy the plan. Options commonly include 5 years, 10 years, or coverage until retirement age.
- While private plans often have higher premiums, they can be tailored to fit your needs and lifestyle.
- They’re a good option for self-employed individuals or those who want more control over their disability protection.
3. Social Security Disability Insurance (SSDI)
This is a federal program run by the Social Security Administration for people with severe, long-term disabilities.
- SSDI benefits continue as long as you meet the government’s definition of disability.
- Your case is usually reviewed every few years to determine if you’re still eligible.
- SSDI payments end if:
- You’re no longer considered disabled.
- You begin earning more than a set monthly limit, known as Substantial Gainful Activity (SGA).
- You reach full retirement age, at which point SSDI automatically converts into Social Security retirement benefits.
Understanding which type of policy you have—and its specific rules—can help you plan better for the future and avoid unexpected gaps in income.
What Can Shorten or Extend Your LTD Benefits?
Even if your long-term disability (LTD) policy says benefits last for 10 years or until retirement, other factors can affect how long you actually receive payments. Some situations might shorten your benefit period, while others can help extend it.
1. Your Disability Improves
If your medical condition improves and your doctor clears you to return to work—even part-time—your insurer may stop your benefits. Insurers will check medical updates regularly to determine if you’re still unable to perform job duties.
- You may lose benefits once you regain work capacity.
- Some policies reduce your benefit if you return to work at reduced hours or income.
2. Policy Definition of Disability Changes
Most LTD policies have two phases:
- Own Occupation: For the first 24 months, benefits are paid if you can’t do your specific job.
- Any Occupation: After that, you must prove you’re unable to work any job suited to your skills and education.
If you’re considered fit for any type of work, even in a lower-paying field, your insurer may end or reduce your payments.
3. Age at the Time You Become Disabled
Your age when your disability begins can also affect your coverage length. Many plans use an age-based schedule to determine benefits.
- If you become disabled at age 30, you may receive benefits up to age 65.
- But if you’re disabled at age 60, you might only get 5 years of benefits.
This schedule is often outlined in your policy’s “maximum benefit duration” section.
4. Lump Sum Buyouts
In some cases, the insurance company may offer a lump sum buyout instead of continuing monthly payments. This is a one-time payout to close your claim.
- Accepting a buyout ends your benefits early.
- While it may seem convenient, it’s important to calculate if it covers your long-term needs.
Speak with a financial advisor or lawyer before agreeing to a buyout.
5. Regular Evaluations
To stay eligible, insurers usually require ongoing proof that you’re still disabled.
- You may need to provide medical records regularly.
- They can request independent medical exams (IMEs).
- Some may also require vocational assessments or interviews.
Failing to comply or missing appointments could lead to delayed or denied payments. Keeping documentation up to date is essential to avoid interruptions.
What Happens When Long-Term Disability Ends?
When your long-term disability (LTD) benefits end—either because you’ve reached the maximum benefit period, recovered enough to work, or aged into retirement—it’s important to plan your next steps. What happens next depends on your health, financial situation, and available resources.
1. If You’re Still Disabled
If your disability continues after your LTD benefits stop, you’ll need to find other ways to support yourself. Some common options include:
- Apply for Social Security Disability Insurance (SSDI): If you haven’t applied already, SSDI can provide ongoing monthly support if your condition meets their criteria.
- Tap into personal savings or retirement accounts: While not ideal, this may be necessary if no other support is available.
- Explore government aid programs: Look into Medicaid, Supplemental Security Income (SSI), food assistance, or local disability support programs.
Staying proactive can help you avoid financial hardship after LTD coverage ends.
2. If You’ve Recovered
If your health has improved and you can return to work, you have a few options to ease the transition:
- Return to your previous job, if it’s still available and you’re physically able.
- Look for lighter or part-time work that matches your current abilities.
- Check with your insurer—some offer “return to work” incentives or partial disability benefits to help bridge the gap as you ease back into employment.
Rebuilding your career gradually can help protect your health and income.
3. If You’re Near Retirement Age
Most LTD policies stop paying benefits at age 65, or when you reach full retirement age, depending on your plan.
- At this point, you’ll likely transition into Social Security retirement benefits.
- Be sure to coordinate your retirement income sources—like pensions, 401(k)s, or IRAs—to maintain your lifestyle.
Some insurers may automatically help you shift from LTD to retirement benefits, but it’s wise to speak with a financial advisor to prepare for the change.
Can You Get Both LTD and SSDI?
Yes. You can receive both LTD payments and SSDI at the same time. However:
- LTD insurers usually reduce your monthly payments by the amount you receive from SSDI.
- You must typically apply for SSDI if your LTD plan requires it.
Why? It helps insurers share the financial burden with the government.
Tips for Managing Long-Term Disability Benefits
Here’s how to get the most from your LTD coverage:
- Understand your policy: Know the benefit period, payment amount, and definition of disability.
- Keep medical records: Stay up-to-date on your condition.
- Stay in touch with your doctor: They must confirm your ongoing disability.
- Communicate with your insurer: Respond to requests promptly.
- Consider a disability attorney if your claim is denied.
Long-Term Disability and Taxes
LTD payments may or may not be taxed, depending on who paid the premiums:
- You paid with after-tax dollars: Benefits are generally tax-free.
- Employer paid: Benefits are usually taxable as income.
If you’re unsure, consult a tax advisor.
Key Takeaways
- How long does long-term disability last? It depends on your policy and condition. Most plans pay until age 65 or for a set number of years.
- Your benefits may end early if your condition improves, you can work again, or you reach the policy’s limit.
- SSDI can extend your support, but you must qualify and apply separately.
- Read your policy carefully and talk to your HR rep or insurance provider if you’re unsure of your coverage.
Final Thoughts
Navigating long-term disability can feel overwhelming, but understanding your policy is the first step toward peace of mind. Whether you’re dealing with a short-term illness or a life-changing condition, LTD insurance is there to help—but only for as long as your coverage allows.
Stay informed, stay organized, and don’t hesitate to ask questions. With the right plan in place, you can focus on recovery and stability.
If you’d like help understanding your specific LTD policy or exploring your options beyond insurance—like SSDI or financial planning—I can help you create a checklist or breakdown tailored to your situation.
