What type of insurance provides financial support to disabled employees after an initial period?

Long-term disability insurance is designed to provide financial support to employees who become disabled and are unable to work for an extended period. This type of insurance typically kicks in after a waiting period, which can range from a few months to a year, once the employee's short-term disability benefits have ended or once they have exhausted their other forms of financial support. It offers a percentage of the employee's salary, usually between 50% to 70%, to help cover living expenses while they recover or adjust to their new situation.

This coverage is critical because disabilities often extend beyond the capabilities of short-term disability insurance, which usually only covers a limited time period (up to six months) and is intended for temporary conditions. Long-term disability insurance, on the other hand, is essential for employees facing chronic health issues or severe injuries that may impede their ability to return to work for an extended period, thus ensuring they have a financial safety net in place.

Health insurance primarily covers medical expenses, while accidental insurance provides financial benefits in the case of injuries due to accidents, neither of which focus specifically on income replacement for disabled employees over the long term.