long-term disability income insurance

Definition

An insurance policy that protects against situations where the insured is unable to work because of serious injury or illness. It replaces most or part of the insured's income should their ability to perform regularly assigned work duties be greatly reduced. Policies vary, but most limit the maximum amount of benefits to between 70 and 80% of normal monthly income. Payments that help with living expenses can potentially continue for 2 to 3 years should the disability last that long.
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long-term debt long-term equity anticipation security (LEAP)