what happens to long-term disability if you lose your job

what happens to long-term disability if you lose your job

What Happens to Long-Term Disability if You Lose Your Job?

A long-term disability policy can provide you with financial protection for an extended period of time. Depending on the policy, this can last for years or even a lifetime. But what happens if you lose your job? Let’s take a look at the answer.

Rights of the Employer

Most long-term disability policies are provided through an employer, and the employer has the right to cancel the policy if you lose your job. This means that you will no longer be covered under the policy and would not be able to receive any benefits if you become disabled.

Your Rights and Options

Fortunately, most long-term disability policies provide you with some rights and options. These options may include:

  • The Right to Port: You may be able to port your policy to a private insurer, which could allow you to continue coverage even if you change jobs or lose your job.
  • The Right to Convert: You can convert your policy to an individual policy, which you own and can continue even if you are no longer employed.
  • The Right to Extend: You may be able to extend your policy for a certain period of time, depending on the terms of your policy.

Making a Decision

It is important to carefully consider these options when deciding how to handle your long-term disability policy. You should also consider the cost of these options, as well as the amount of coverage you will need in the future.

It is also important to note that some employers may choose to keep the coverage for a certain period of time after you leave, so it’s always worth checking to see if this is an option.

Ultimately, you should take the time to assess your situation and make an educated decision about the best option for you.

Whether you choose to port, convert, or extend your policy, it’s important to understand the pros and cons of each option before making a decision.


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