Your ability to receive benefits from your long-term disability policy is also dependent on how your insurer defines disability.
As noted, in the own occupation versus any occupation section, these distinctions are key to any policy, but the definition of disability should be clear to both parties involved before signing on the dotted line.
For example, if you’re still able to work in some way, many insurers may only consider you “partially disabled.” Depending on how much income you’re bringing in from a potential new job, the amount of benefit paid out will adjust accordingly. If you’re making less 20% of your pre-disability income, you’ll likely get full benefits, but if you’re making between 20% and 80%, then you’ll get your benefits on a proportionally sliding scale. If you’re making more 80% or higher than your pre-disability income, then they likely won’t even consider you disabled.
Because the amount of benefit paid out and stipulations for payout differ between insurers, these are the aspects you need to discuss with your agent before you fully commit to any long-term disability policy. That way you’ll know how it can help in every situation.